BlueCo. prepares its statement of cash flows using the indirect method. Blues bad debt allowance increased by
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Question:
BlueCo. prepares its statement of cash flows using the indirect method. Blue’s bad debt allowance increased by $18,000 during the year and no accounts were written off. How should Blue report the change in its bad debt allowance in the statement of cash flows?
Multiple Choice
As a financing cash outflow.
As an addition to the net income in the operating activities section.
As an investing cash outflow.
As a subtraction from net income in the operating activities section.
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
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