Monro Inc. uses the accrual method of accounting. Here is a reconciliation of Monro's allowance for bad debts for the current year.Beginning allowance for bad debts?$ 61,150??Actual write-offs of accounts receivable during the year?(80,000)?Addition to allowance? 88,500??Ending allowance for bad debts?$ 69,650???Which of the following statements is true?
A. Bad debt expense per books is $88,500, and the deduction for bad debts is $80,000.
B. Bad debt expense per books is $80,000, and the deduction for bad debts is $88,500.
C. Bad debt expense per books and the deduction for bad debts is $88,500.
D. Bad debt expense per books and the deduction for bad debts is $69,650.
Answer: A
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