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When the company received an official notice that the customer is not going to pay the debt, what effect does it have on the accounting

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When the company received an official notice that the customer is not going to pay the debt, what effect does it have on the accounting equation if the allowance method is used? Select one: a. Decreases assets and decreases liabilities b. Increases assets and increases stockholders' equity. c. No effect on the accounting equation d. Decreases assets and decreases stockholders' equity

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