How can accounting for bad debts be used for earnings management? a. determining which accounts to write-off. b. changing the percentage of sales recorded as bad debt expense. c. using an aging of the accounts receivable balance to determine bad debt expense. d. reversing previous write-offs.

B) Changing the percentage of receivables recorded as bad debt expense.

Explanation:

The percentage of receivables method is used to derive the bad debt percentage that a business expects to experience. The technique is used to populate the allowance for doubtful accounts, which is a contra account that offsets the accounts receivable asset.

Earnings management is the use of accounting techniques to produce financial statements that present an overly positive view of a company's business activities and financial position

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