A company accounts for possible bad debts using the allowance method. When an actual bad debt occurs, what effect does it have on the balance sheet? Multiple Choice Decreases assets and decreases llabilities Increases assets and increases stockholders' equity Decreases assets and decreases stockholders' equity No effect on the balance sheet

A company accounts for possible bad debts using the allowance method. When an actual bed debt occurs, what effect doos it have on the balance sheet? Mutiple Choice Decreases assets and decresses lloblities 'hcreases assets and increases stockholders' equoy Decresses assets and decieases steckholders' equity No effect on the belance shect