The Advantage of Relating a Company's Bad Debt Expense to Its

Multiple Choice

The advantage of relating a company's bad debt expense to its outstanding accounts receivable is that this approach

A) gives a reasonably correct valuation of the receivables in the statement of financial
Position.
B) best relates bad debts expense to the period of sale.
C) is the only generally accepted method for valuing accounts receivable.
D) makes estimates of uncollectible accounts unnecessary.