Assertion: bad debt expense | /r/HasProperty | reported on the income statement
Facets:
Source sentences:
text: For financial statement purposes the allowance method is the better method since 1) the balance sheet will be reporting a more realistic amount that will be collected from the company's accounts receivable, and 2) the bad debts expense will be reported on the income statement closer to the time of the related credit sales.
text: It can also result in the Bad Debts Expense being reported on the income statement in the year after the year of the sale.