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The Heritage Company has provided the following information: • Allowance for doubtful accounts increased $25,000 and accounts
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Answer #1

Increase in allowance for doubtful accounts = $25,000

When allowance for doubtful account increases, Bad debts expense is debited and allowance for doubtful accounts is credited.

Hence, Bad debt expense must have been = $25,000

Correct option is (E)

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