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

Accounting

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 prepare-off have on this company's net income and total assets assuming the allowance method is used to account for bad debts?

1. decrease in net income; no effect on total assets.

2. no effect on net income; no effect on total assets.

3. decrease in net income; decrease in total assets.

4. increase in net income; no effect on total assets.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M990972

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - a summary of labor costs and associated

Question - A summary of labor costs and associated deductions for the month of July follows: Gross PAYG Tax Super Medical Fund Direct labour 40,000 12,000 2,000 200 Indirect labour 8,000 2,400 400 40 48,000 14,400 2, ...

Question - tribune manufacturing purchased a machine for 60

Question - Tribune Manufacturing purchased a machine for $60 000 on 1 January 2015 which is expected to have a 5 year useful life, no residual value, and to produce a total of 20 000 gadgets before it is scrapped. Assumi ...

Question - post the following transactions into the

Question - Post the following transactions into the appropriate T accounts. Transactions: 1. Purchased office supplies for $6,000 in cash. 2. Delivered monthly statements; collected fee income of $52,000. 3. Paid the cur ...

Question - applying managerial accounting concepts to the

Question - Applying Managerial Accounting Concepts to the Service Industry Many of the concepts in managerial accounting were first developed for the manufacturing environment. Do you think the same concepts, such as var ...

Question - x company wants to estimate overhead costs in

Question - X Company wants to estimate overhead costs in March, when production is expected to be 1,400 units. To determine the parameters of its overhead cost function, it used account analysis with the January cost inf ...

Question - on january 1 2016 sinclair corp bought equipment

Question - On January 1, 2016, Sinclair Corp. bought equipment using a $10,000,000 zero-interest-bearing bond due on January 1, 2021. The prevailing rate of interest for a note like this on January 1, 2016 was 7%. What a ...

Question - 2018 pretax accounting income 400000all fixed

Question - 2018 Pretax Accounting Income: $400,000 All Fixed Assets Purchased Prior to January 1, 2018 were Fully Depreciated at 12/31/17 Fixed Assets purchased on January 1, 2018 for $100,000 and have Estimated Life of ...

Assignmentplease read the following economist article that

Assignment Please read the following economist article that is attached at the end of this instruction paper: "The Future of Jobs The onrushing wave Previous technological innovation has always delivered more long-run em ...

Question - on december 31 year 1 day co leased a new

Question - On December 31, year 1, Day Co. leased a new machine from Parr with the following pertinent information: Lease term 8 years Annual rental payable at beginning of each year $60,000 Useful life of machine 10 yea ...

Question in this assignment you will write an executive

Question: In this assignment, you will write an executive summary analyzing the exchange risks, country risks, and political risks the company executive team needs to be aware of in building a manufacturing facility in B ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert