Earl Company uses the accrual method of accounting. At the beginning of the year, Earl's allowance for bad debts account was $950,000. Earl recorded an increase in the allowance account of $845,000 and ending allowance account balance was $895,400. Which of the following statements is true? A.Bad debt expense per books is $845,000, and the deduction for bad debts is $899,600. B.Bad debt expense per books is $899,600, and the deduction for bad debts is $845,000. C.Bad debt expense per books and the deduction for bad debts is $899,600 D.Bad debt expense per books and the deduction for bad debts is $895,400
