Question: Zorro uses the direct write - off method. When Zorro Company writes off a bad debt, what is the effect of that single transaction? Question

Zorro uses the direct write-off method. When Zorro Company writes off a bad debt, what is the effect of that single transaction?
Question 5Select one:
a.
It will increase total assets of the company.
b.
It will reduce profit.
c.
It will have no effect on profit.
d.
It will generate positive cash flow.

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