Use the Information Above to Answer the Following Question

question 37

Multiple Choice

Use the information above to answer the following question.In January 2015,the company writes off a $500 account which it determines is uncollectible.If the company uses the allowance method,which of the following is true?

• A)The write-off will decrease the current assets by $500.
• B)The write-off will decrease net income for 2015 by $100.
• C)The write-off will decrease net accounts receivable by $100.
• D)The write-off will not increase the expenses for 2015.

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Definitions:

Disciplinary Method

Strategies or techniques used to teach and enforce rules and behaviors, aiming to guide and correct an individual's actions towards socially acceptable standards.

Pros And Cons

The advantages (pros) and disadvantages (cons) of a specific decision, action, or situation.

Research

A systematic investigation into and study of materials, sources, etc., in order to establish facts and reach new conclusions.

Settling Down

The process of adopting a more stable and less erratic lifestyle, often associated with making long-term commitments in personal and professional domains.