Respuesta :
The expense recognition (matching) principle, as applied to bad debts, requires: the use of the direct write-off method for bad debts.
The matching principle is aa basic guideline in accounting. This principle is used to determine where debts need to go when accrual journals and adjusting entries are being made for a companies reports. The direct write-off method where a company immediately charges off bad debt from sales revenue.
The expense recognition (matching) principle as applied to the bad debts requires the use of the allowance method of accounting for bad debts.
What is matching principle?
A matching principle refers to an expense that should be reported in the same period in which the revenue is earned.
The expense recognition(matching) principle as applied to bad debts requires the use of the allowance method of accounting for bad debts.
Therefore, C is the correct option.
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