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After applying the lower of cost and net realizable value principle to their merchandise inventory, a company's increased their allowance account by $5,000. What impact

After applying the lower of cost and net realizable value principle to their merchandise inventory, a company's increased their allowance account by $5,000. What impact would this have on their liquidity measures? Select answer from the options below Their working capital would increase. The quick ratio would go down. The current ratio would go down. It would not impact the company's liquidity

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