Earl Company Uses the Accrual Method of Accounting

question 40

Multiple Choice

Earl Company uses the accrual method of accounting.Here is a reconciliation of Earl's allowance for bad debts for the current year. Which of the following statements is true?

• A)Bad debt expense per books is $845,000,and the deduction for bad debts is $899,600.
• B)Bad debt expense per books is $899,600,and the deduction for bad debts is $845,000.
• C)Bad debt expense per books and the deduction for bad debts is $899,600.
• D)Bad debt expense per books and the deduction for bad debts is $895,400.

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