In Relation to the Expense Associated with the Creation of an Allowance

Multiple Choice

In relation to the expense associated with the creation of an allowance for doubtful debts,the Australian Taxation Office:

A) never allows a deduction for taxation purposes for that amount.
B) allows a deduction for taxation purposes for that amount when it is recognised as an expense.
C) allows a deduction for taxation purposes immediately.
D) allows a deduction for taxation purposes only when there is a bad debt written off against a debtors account.