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Forrest Corporation Uses the Direct Write-Off Method to Account for Bad

Question 2

Multiple Choice

Forrest Corporation uses the direct write-off method to account for bad debts. What are the effects on the accounting equation of the entry to record the write-off of a customer's account balance?


A) Assets and liabilities decrease
B) Assets and equity decrease
C) Equity and liabilities decrease
D) Assets increase and equity decrease

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