On December 1, Anson's Drug Store Concluded That a Customer's

question 70

Multiple Choice

On December 1, Anson's Drug Store concluded that a customer's $325 account receivable was uncollected and that the account should be written off. What effect will this write-off have on the company's net income and balance sheet totals assuming the direct write-off method is used to account for bad debts?

• A)decrease in net income; decrease in total assets
• B)increase in net income; no effect on total assets
• C)no effect on net income; decrease in total assets
• D)no effect on net income; no effect on total assets

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Definitions:

Legitimised

Made acceptable, lawful, or officially approved, often in a social, legal, or moral context.

Enshrined

Describes something that is preserved or cherished as if sacred, often in reference to principles, rights, or values embedded within legal or moral codes.

Prejudices

Preconceived opinions that are not based on reason or actual experience, often leading to biased attitudes towards individuals or groups.

Three-Component Attribute Model

A framework proposing that attitudes comprise cognitive, affective, and behavioral components, each contributing to the evaluation of an object or idea.