During the Current Year, TechCom Concluded That a Customer's $4,400

question 122

Multiple Choice

During the current year, TechCom 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 TechCom's current year net income and balance sheet assuming the allowance method is used to account for bad debts?

• A) No effect on net income or on total assets
• B) Decrease in 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

Interpret how leadership models build upon and extend behavioral leadership theories.

Understand the elements of a well-written training objective.

Recognize the importance of a comprehensive request for proposal (RFP) in identifying training needs.

Comprehend Gagné's theory on task analysis and its application in training.

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Definitions:

Journalized

The process of recording business transactions in the journal, which is the first step in the accounting cycle.

Posted

In accounting, "posted" refers to the process of recording a financial transaction in a company's ledger, which then becomes part of the official financial records.

Accounting Cycle

A process that involves recording and processing all financial transactions of a company, from when the transaction occurs, to its representation in the financial statements.

Closing Entries

Entries recorded at the closing of an accounting cycle to shift balances from temporary to permanent accounts, readying the accounts for the upcoming period.