Robb corporation uses the allowance method of accounting


Question - Robb Corporation uses the allowance method of accounting for uncollectible accounts. During 2010, Robb had charged $80,000 to bad debt Expense, and wrote off accounts receivable of $90,000 as uncollectible. What was the amount of the decrease in working capital as a result of these entries?

a. $0

b. $90,000.

c. $80,000

d. $10,000.

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Accounting Basics: Robb corporation uses the allowance method of accounting
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