Bad Debts Expense is reported on the income statement as
A) part of cost of goods sold.
B) an expense subtracted from gross sales to determine net sales.
C) an operating expense.
D) a non-operating expense.

Question

Quizplus · Accepted Answer

Bad Debts Expense is considered an operating expense because it is a cost associated with the normal operations of a business, specifically related to credit sales.

Bad Debts Expense Is Reported on the Income Statement as