What Is the Effect of a Bad Debt on the Statement

Multiple Choice

What is the effect of a bad debt on the statement of financial position, the income statement and the cash flow statement?

A) Reduce the receivables in the statement of financial position, no effect on the income statement, no effect on the cash flow statement
B) Reduce the receivables in the statement of financial position, show as expense in the income statement, no effect on the cash flow statement
C) No effect on the statement of financial position, show as expense in the income statement, no effect on the cash flow statement
D) No effect on the statement of financial position, show as expense in the income statement, reduce the cash inflows in the cash flow statement