Question: Select the true statement about the allowance method of accounting for bad debts. a.) It directly credits accounts receivable. b.) It includes uncollected cash sales.

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

a.) It directly credits accounts receivable.

b.) It includes uncollected cash sales.

c.) It is not required for financial reporting.

d.) It focuses only on customers with credit accounts.

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