Question: . Fenchurch Corp. uses the direct write-off method to account for bad debts. What are the effects on the accounting equation of the entry to

. Fenchurch Corp. uses the direct write-off method to account for bad debts. What are the effects on the accounting equation of the entry to record the write-off of a customer's account balance? a. Assets and liabilities decrease. b. Assets and owners equity decrease. c. Owners equity decrease and liabilities increase. d. No effect; assets increase and decrease by the same amount.

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