In recent years debit cards have become popular. debit cards allow the holder of the card to pay a merchant for gods and services directly from a checking account. how do you think the introduction of debit cards affected the amount of currency in the economy? how about the amount of checking account deposits.

Acompany has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. experience suggests that 6% of outstanding receivables are uncollectible. the current credit balance (before adjustments) in the allowance for doubtful accounts is $1,200. the journal entry to record the adjustment to the allowance account includes a debit to bad debts expense for $4,800. true or false