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Rishi Nayer
on Nov 14, 2024

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When the allowance method of recognizing bad debts expense is used the entry to recognize that expense

A) increases net income.
B) decreases current assets.
C) has no effect on current assets.
D) has no effect on net income.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and record bad debts expenses.

Recognizing

The process of formally recording or incorporating an item into the financial statements of an entity.

Current Assets

Current Assets are assets that are expected to be converted into cash, sold, or consumed within one year or within a company’s operating cycle if longer than a year.

  • Detect and note transactions involving sales on credit, and grasp the ramifications for financial statements.
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Ana Valeria SuarezNov 19, 2024
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