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Jerry Plumber has decided to apply the direct write-off method to account for its bad debts. At the end of their first month (January
Jerry Plumber has decided to apply the direct write-off method to account for its bad debts. At the end of their first month (January 2020) of operations, their Accounts Receivable account reports an ending balance = $270,000 Debit balance. What would be the correct advice you would give to Jerry Plumber? Select one: a. Jerry Plumber should not realistically expect to collect the full $270,000 cash from their Accounts Receivable customers. Ob. Jerry Plumber should continue to apply the direct write-off method. c. Jerry Plumber should assume 0% doubtful debts. Od. Jerry Plumber should feel confident and expect to collect 100% of the $270,000 in cash in the future.
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