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Businesses usually take a certain procedure to set aside a little amount of their Accounts...

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Accounting

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Businesses usually take a certain procedure to set aside a little amount of their Accounts Receivable; and subtract it due to the possibility of losing them (A/R). Which of the following describes the procedure and the impact of it most appropriately? It is called "Writing.off." The uncollectable amount is recorded in a separate document until the final decision is made. The uncollectable amount is written off as a Bad Debt expense. Since it is written off as an expense, the amount of net profit is reduced. No further impacts are recognized. The uncollectable amount is written off as a Bad Debt expense, ends up reducing the profit. By writing-off the amount, the balance of Account Receivable is also reduced on the Balance Sheet The uncollectable amount is written off as an expense (Bad Debt). By writing-off, the balance of cash decreases on the Balance. Sheet

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