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The Data Presented Below Is for Craft, Inc

Question 19

Multiple Choice

The data presented below is for Craft, Inc. for 2015. The data presented below is for Craft, Inc. for 2015.   What is the effect on liquidity when Craft records its estimate for bad debt expense using the allowance method? A)  Liquidity decreases B)  Liquidity increases C)  Liquidity stays the same D)  Liquidity both increases and decreases What is the effect on liquidity when Craft records its estimate for bad debt expense using the allowance method?


A) Liquidity decreases
B) Liquidity increases
C) Liquidity stays the same
D) Liquidity both increases and decreases

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