Bad debt expense is recognized in the same accounting period as the revenue that is related to the receivable because:
a) the accounts receivable asset should be stated at original cost
b) the exact amount of the losses from bad debts is known
c) revenues should be stated at realized value
d) all costs incurred in the current period should be subtracted from the current period revenue.
This solution provides the correct choice with explanation to the bad debt expense question listed.