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If a company uses the allowance method to account for bad debts, when will the company's owners' equity decrease? At the date a customer's account

If a company uses the allowance method to account for bad debts, when will the company's owners' equity decrease?

At the date a customer's account is written off
At the end of the accounting period when an adjusting entry for bad debts is recorded
At the date a customer's account is determined to be uncollectible
When the accounts receivable amount becomes past due

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