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

question 77

Multiple Choice

During the current year, TechCom concluded that a customer's $4,400 accountreceivable 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 assumingthe allowance method is used to account for bad debts?

• A)Decrease in net income; decrease in total assets.
• B)No effect on net income or on total assets.
• C)Decrease in net income; no effect on 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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