The matching principle, as applied to bad debts, requires:
a. that expenses be ignored if their effect on the financial statements is unimportant to users' business decisions.
b. the use of the direct write-off method for bad debts.
c. the use of the allowance method of accounting for bad debts.
d. that bad debts be disclosed in the financial statements.
e. that bad debts not be written off.

Acompany has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. experience suggests that 6% of outstanding receivables are uncollectible. the current credit balance (before adjustments) in the allowance for doubtful accounts is $1,200. the journal entry to record the adjustment to the allowance account includes a debit to bad debts expense for $4,800. true or false