On December 1, 2013, Anson's Drug Store Concluded That a Customer's

question 92

Multiple Choice

On December 1, 2013, 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 2013 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:

Trademark

A distinctive mark, motto, device, or implement that a manufacturer stamps, prints, or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the common law or through registration), the owner is entitled to its exclusive use.

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Copyright

The exclusive right of authors to publish, print, or sell an intellectual production for a statutory period of time. A copyright has the same monopolistic nature as a patent or trademark, but it differs in that it applies exclusively to works of art, literature, and other works of authorship, including computer programs.

Business Processes

The series of activities or tasks that companies perform to create value, deliver products, or provide services.