Problem: Please explain the difference in determining the bad debt expense when using "accounts receivable" as the basis and using "credit sales" as the basis. Include the way it is recorded in the allowance account.
Please also explain this briefly:
1. Credit card expense may be classified as:
A) A "discount" deducted from sales to get net sales.
B) A selling expense.
C) An administrative expense.
D) All of the above.
E) Only a and b.
What is actually meant by credit card expense.