Which Statement Is True About Reporting Receivables On The Balance Sheet?

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Which Statement Is True About Reporting Receivables On The Balance Sheet?

Bad Debts Expense and Allowance for Doubtful Accounts are shown as a deduction from Accounts Receivable on the balance sheet. Allowance for Doubtful Accounts is shown as a deduction from Accounts Receivable on the balance sheet. Bad Debts Expense is is shown as a deduction from Accounts Receivable on the balance sheet. Bad Debts Expense is subtracted from Accounts Receivable and is then shown as a deduction from Accounts Receivable on the balance sheet.
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Allowance for Doubtful Accounts is shown as a deduction from Accounts Receivable on the balance sheet. (Allowance for Doubtful Accounts is a contra asset account that is shown as a deduction from Accounts Receivble on the balance sheet in the current asset section.)
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