Companies that carry inventories must carefully monitor inventory in order to O have the greatest selection available so customers can always find what they want. O minimize carrying costs and keep inventory levels high so stockouts never occur. O keep inventory levels high to maximize profits. O minimize carrying costs and meet customer demands. Using the allowance method, when an account receivable is written off, the account to be debited is O accounts receivable. O cash. O bad debts expense. O allowance for doubtful accounts. Starlight Ltd. assigned $600,000 of Accounts Receivable to Moonbeam Management as security for a loan of $580,000. M charged a 3% commission on the amount of the loan; the interest rate on the loan was 10%. During the first month, Starlig collected $320,000 of the assigned accounts, after deducting $500 of discounts. As well, Starlight accepted returns worth and wrote off assigned accounts totalling $4,500. Entries made by Starlight during the first month would include a O debit to Bad Debts Expense of $4,500. O debit to Accounts Receivable of $324,500. O debit to Cash of $322,600. O debit to Allowance for Doubtful Accounts of $4,500