Digital Corporation
the Following Data Concern Digital Corporation for 2012

question 69

Multiple Choice

Digital Corporation
The following data concern Digital Corporation for 2012.
$\begin{array}{ll}\text { Credit sales during the year } & \$ 2,400,000 \\\text { Accounts receivable--December } 31,2012 & 410,000 \\\text { Allowance for bad debts--December } 31,2012 & 55,000 \\\text { Bad debt expense for the vear } & 35,000\end{array}$
-Refer to the information provided for Digital Corporation. What are the effects on the accounting equation when Digital makes the adjustment to record bad debt expense using the allowance method?

• A) Assets increase and liabilities decrease
• B) Assets and equity decrease
• C) Assets increase and equity decreases
• D) Assets decrease and equity increases

---

Definitions:

Full-time Integrators

Individuals or systems that serve to combine or coordinate various elements or functions continuously within a process or organization.

Liaison Role

A position that requires coordinating activities and communication between different parties or departments within an organization.

Integrator Role

A position or function within an organization tasked with combining inputs, processes, or strategies from different sources or departments to ensure cohesiveness and effective functioning.

Coordinating Role

A function in management and organizations involving the integration and organization of group efforts and resources to ensure tasks are harmoniously executed towards achieving a common goal.