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:

Hedonism

A philosophy that argues pleasure or happiness is the highest good and ultimate aim in life.

Pursuit

The act of following or chasing with the goal of catching or achieving something.

Structural Racism

A system in which public policies, institutional practices, cultural representations, and other norms work in various, often reinforcing ways to perpetuate racial group inequity.

Institutional Racism

Discrimination embedded within the policies, practices, and economic and political structures of a society, disproportionately affecting minority groups.