Allowance method for bad debts

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Reference no: EM13914080

The materiality constraint, as applied to bad debts:

a Permits the use of the direct write-off method when bad debts expenses are relatively small.

b Requires use of the allowance method for bad debts.

c Requires use of the direct write-off method.

d Requires that bad debts not be written off.

e Requires that expenses be reported in the same period as the sales they helped produce.

Reference no: EM13914080

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