Answer
The lack of bad debt expense in P & G’s accounts is practical. Bad debts arise when some sales are made on account and are not recovered. If P & G’s has measures to ensure that substantial amounts of accounts receivable are paid, then there would not be a large bad debt expense.
Work Step by Step
The lack of bad debt expense in P & G’s accounts is practical. Bad debts arise when some sales are made on account and are not recovered. If P & G’s has measures to ensure that substantial amounts of accounts receivable are paid, then there would not be a large bad debt expense.
