On October 12 of the Current Year,a Company Determined That

question 4

Multiple Choice

On October 12 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.

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Definitions:

Entire Society

Pertains to all members and aspects of a specific community or population, encompassing its culture, institutions, and individuals.

Social Organization

The structured patterns of relationships and roles found within societies that organize and coordinate collective human activities.

Family Unit

A social group in society typically consisting of parents and their children living together as a single household.