25. In accounting for bad debts: a. The allowance method matches losses with related sales better than the direct write-off method. b. The direct write-off method involves estimating credit losses. a. The alle C. The direct write-off method consistently understates assets on the balance sheet. d. Both (b) and (c) 26. If a company fails to make an adjusting entry to estimate doubtful accounts, then this error: a. Understates owners' equity b. Understates assets c. Overstates net income d. Overstates expenses 27. A note for $24,000 is dated May 3, 2019 and it matures on August 1, 2019. The note is a: a. 3-month note b. 90-day note c. 91-day note d. Both A and B 28. If Bruce Company fails to make an adjusting entry to accrue interest on a note receivable, then this error: a. Overstates expenses b. Understates income c Understates assets and owners' equity d. b and c