Which of the Following Is True About Bad Debt Expense

question 86

Multiple Choice

Which of the following is true about bad debt expense?

• A) It should appear on the statement of financial position as a contra asset.
• B) It should appear on the income statement as a contra revenue.
• C) It should appear on the income statement as part of selling expenses.
• D) It should not appear in the financial statements.

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Definitions:

Ratchet

Locking mechanism of an instrument.

Locking Mechanism

A device or feature designed to prevent the operation or movement of a piece of machinery or equipment until it is unlocked.

Towels Dressings

Absorbent materials, such as towels, used for covering and protecting wounds to absorb discharge and facilitate healing.