Multiple Choice
Richard LLC accounts for possible bad debts using the allowance method.When an actual bad debt occurs,what effect does it have on the accounting equation?
A) Increases assets and increases stockholders' equity.
B) Decreases assets and decreases stockholders' equity.
C) Decreases assets and decreases liabilities.
D) No effect on the accounting equation.
Correct Answer:
Verified
Correct Answer:
Verified
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