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Marilyn Corporation Uses the Allowance Method

Question 6

Multiple Choice

Marilyn Corporation uses the allowance method.Marilyn writes off a $560 customer account balance when it becomes clear that the customer will never pay.Marilyn should debit:


A) Bad Debt Expense and credit Accounts Receivable for $560.
B) Allowance for Doubtful Accounts and credit Accounts Receivable for $560.
C) Bad Debt Expense and credit Cash for $560.
D) Accounts Receivable and credit Bad Debt Expense for $560.

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