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During 2020, Olivier Corp., which uses the allowance method of accounting for doubtful accounts, recorded bad debts expense of $25,000. As well, the corporation wrote
During 2020, Olivier Corp., which uses the allowance method of accounting for doubtful accounts, recorded bad debts expense of $25,000. As well, the corporation wrote off uncollectible accounts receivable of $9,000. As a result of these transactions, their cash flows from operating activities would be calculated (indirect method) by adjusting net income with a
a) $34,000 decrease.
b) $9,000 increase.
c) $25,000 increase.
d) $16,000 increase.
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