The materiality constraint, as applied to bad debts:
A. Requires that bad debts not be written off.
B. Permits the use of the direct write-off method when bad debts expenses are relatively small.
C. Requires use of the allowance method for bad debts.
D. Requires use of the direct write-off method.
E. Requires that expenses be reported in the same period as the sales they helped produce.
Answer: B
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