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Question
Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollectible. The entry to write off this account would be
a. debit Allowance for Doubtful Accounts; credit Accounts Receivable
b. debit Accounts Receivable; credit Notes Receivable
c. debit Bad Debt Expense; credit Allowance for Doubtful Accounts
d. debit Bad Debt Expense; credit Accounts Receivable
Answer
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