26 CAR § 130-129. Deductions — Reserve for bad debts or liabilities — Bad debt expense — Arkansas Code § 26-51-426

(a) A business is generally allowed to take a bad debt expense. (b) Any bank, savings and loan, or any other institution chartered and supervised under federal or state laws shall be allowed a bad debt expense deduction computed in accordance with Internal Revenue Code Sections 582, 585, and 593, as in effect on January 1, 1997. (c) Banks with assets over five hundred million dollars ($500,000,000) must use the specific charge-off method for bad debts.