Question: Select the true statement about the allowance method of accounting for bad debts. a.) It follows the matching principle. b.) It is the less-preferred method

Select the true statement about the allowance method of accounting for bad debts.

a.) It follows the matching principle.

b.) It is the less-preferred method for financial reporting purposes

. c.) It directly credits accounts receivable.

d.) It focuses on customers with credit and cash accounts.

Answer:

It follows the matching principle.

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