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Direct Write-off and Allowance Methods for Dealing with Bad Debt – Accounting In Focus
 Loaning money contains risk. Every time a business extends payment terms to a customer, that business is taking on risk. Not every customer will pay on time, some may not pay at all. When a customer defaults on an amount due, this is called bad debt. When an account is deemed to be uncollectible, …
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Draper Company estimated bad debt expense for the year to be 20,000. Which debit or credit is included in the adjusting entry to record bad debt expense for the year?DEBIT Allowance for Bad DebtsCREDIT Accounts ReceivableCREDIT Allowance for Bad DebtsCREDIT CashCREDIT Bad Debt Expense
Draper Company estimated bad debt expense for the year to be 20,000. Which debit or credit is included in the adjusting entry to record bad debt expense for the year?DEBIT Allowance for Bad DebtsCREDIT Accounts ReceivableCREDIT Allowance for Bad DebtsCREDIT CashCREDIT Bad Debt Expense
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