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  3. a cutomer is declared bad and it is certain that t

A cutomer is declared bad and it is certain that the buisness will not be...

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Accounting

A cutomer is declared bad and it is certain that the buisness will not be able to recover the amount. In this context which of the following is correct ?
A. Trade Receivables have to be written off and allowance for credit loss would get reduced by that amount.
B. Trade Receivables would have to be written off and allowance for credit loss would get increased by that amount
C. Bad debts would get reduced and allowance for credit loss would get increased by that amount
D. Revenue will increase and allowance for credit loss would get increased

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