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Question(s) / Instruction(s):

If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the entry to record the write-off against the allowance account results in:

A.            No effect on the expenses of the current period.

B.            An increase in the expenses of the current period.

C.            A reduction in current assets.

D.            A reduction in current liabilities.

E.            A reduction in equity.

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