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Which accounts are affected, and in which direction, by the following business transaction? You estimate that one specific customer's account will not be collected in

Which accounts are affected, and in which direction, by the following business transaction?

You estimate that one specific customer's account will not be collected in future, and you write it off.

1)

Accounts receivable increases

2)

Bad debt expense decreases

3)

Allowance for doubtful accounts increases

4)

Accounts receivable decreases

5)

Allowance for doubtful accounts decreases

6)

Cash increases

7)

Bad debt expense increases

8)

Cash decreases

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