Question: Which 3 steps are part of the process for using the direct method to write off bad debt for an accrual-based client? liability account for

Which 3 steps are part of the process for using the direct method to write off bad debt for an accrual-based client?

  • liability account for bad debt
  • expense account for bad debt
  • service or non-inventory item for bad debt
  • invoice using an item posting to bad debt, entering as a negative number
  • credit memo using an item posting to bad debt, entering as a positive number

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