Manipulation of the allowance for doubtful accounts, Accounting Basics

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Manipulation of the allowance for doubtful accounts

The manipulation of the allowance for doubtful accounts by management would be best indicated by when a company:

a. tightens its credit standards and the allowance account decreases.

b. lowers its credit standards and the allowance account decreases.

c. tightens its credit standards and the allowance account increases.

d. lowers its credit standards and the allowance account increases.

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Accounting Basics: Manipulation of the allowance for doubtful accounts

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Accounting Basics: Manipulation of the allowance for doubtful accounts

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