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Higher, lower, no effect Recently, Galaxy Corporation lowered its allowance for doubtful accounts by reducing bad debt expense from 2% of sales to 1% of

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Higher, lower, no effect

Recently, Galaxy Corporation lowered its allowance for doubtful accounts by reducing bad debt expense from 2% of sales to 1% of sales. Ignore taxes. Required: a. What are the immediate effects on operating income? b. What are the immediate effects on operating cash flow

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