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What two conditions must be met before the allowance method

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Problem 1: The allowance method of recognizing bad debt expense (as opposed to the direct write-off method) can be applied in more than one way. What two conditions must be met before the allowance method can be used?

A. Bad debts must be expected and material.

B. Bad debts must be relevant and reliable.

C. Bad debts must be consistent over time and the method used to estimate them must be consistently applied.

D. Bad debts must be probable and estimable.

Reference no: EM132704594

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