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Which of the following is correct when bad debt expense is recorded at year-end?
Current assets will increase.
Gross profit will decrease.
Income from operations will decrease.
Current liabilities will decrease.
Current assets will increase.
Gross profit will decrease.
Income from operations will decrease.
Current liabilities will decrease.
Solution
When bad debt expense is recorded at year end Income from Operations will decrease.

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  • 1. Which of the following is correct when bad debt expense is recorded at year-end? Current assets will increase. Gross profit will decrease. Income from operations will decrease. Current liabilities will decrease. Current assets will increase. Gross profit will decrease. Income from operations will decrease. Current liabilities will decrease. Solution When bad debt expense is recorded at year end Income from Operations will decrease.