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Problem 1: Which of the following statements is incorrect in relation to the direct write-off method of accounting for bad debts?
Group of answer choices
Option 1: Bad debts are charged as an expense at the time an account is determined to be uncollectable. Option 2: Bad debts expense is recorded in the same period in which its related sales revenue is included in income Option 3: The entry to write off bad debts is Dr Bad debt expense, Dr GST collected/payable, Cr Accounts receivable Option 4: There is no contra asset account for estimated doubtful debts.
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