When an Account Receivable Is Written Off Under the Direct

question 1

Multiple Choice

When an account receivable is written off under the direct write-off method, the accounting equation is kept in balance because

• A) assets and equity both decrease by the same amount.
• B) assets both increase and decrease by the same amount.
• C) assets and equity both increase by the same amount.
• D) equity both increases and decreases by the same amount.

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