On October 17 of the Current Year,a Company Determined That

question 89

Multiple Choice

On October 17 of the current year,a company determined that a customer's account receivable was uncollectible and that the account should be written off.Assuming the allowance method is used to account for bad debts,what effect will this write-off have on the company's net income and total assets?

• 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.