On october 29 of the current year a company concluded that, Ask an Expert

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On October 29 of the current year, a company concluded that a customer's $4,400 account receivable was uncollectible and that the account should be written off. What effect will this write-off have on this company's net income and total assets assuming the allowance method is used to account for bad debts?

a. Decrease in net income; no effect on total assets.

b. No effect on net income; no effect on total assets.

c. Decrease in net income; decrease in total assets.

d. Increase in net income; no effect on total assets.

e. No effect on net income; decrease in total assets.

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Accounting Basics, Accounting

Category:- Accounting Basics
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