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I took the lsat in October and took it again today to try and score higher. I bombed the RC section and know I didnt do better. So, i am going to cancel. Im going to just apply now with my october score but do i have to state on my applications that i took the test in DEC if i am canceling??

I know you can take lsat up to 3x in a given cycle. Does cancellation cant as one?

Yes, a cancellation counts as one.