Which of the Following Is True of the Treatment of Bad

Multiple Choice

Which of the following is true of the treatment of bad debts expense in the allowance method of accounting for bad debts?

A) Bad debts expense is provided in advance by estimating the expenses.
B) Bad debts expense is credited in the adjusting entry to create provision for bad debts.
C) Bad debts expense is recorded as the difference between the estimated and actual uncollectible accounts.
D) Bad debts expense is treated as a deduction from Accounts Receivable.