Use the Following to Answer Questions

question 28

Multiple Choice

Use the following to answer questions
On January 1,2016,Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31,000 and $500,respectively.During the year Kincaid reported $72,500 of credit sales.Kincaid wrote off $550 of receivables as uncollectible in 2016.Cash collections of receivables amounted to $74,550.Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.
-Kincaid's entry to recognize the write-off of the uncollectible accounts will

• A)increase total assets and total equity.
• B)increase total assets and decrease total equity.
• C)decrease total assets and total equity.
• D)not affect total assets or total equity.

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Definitions:

Master Gland

A term often used to describe the pituitary gland due to its central role in regulating numerous other endocrine glands in the body.

Growth Hormone

A biochemical substance that promotes growth, cellular reproduction, and the restoration of cells in humans and animals.

Pituitary Gland

A small, pea-sized gland located at the base of the brain, crucial for regulating vital body functions and general well-being through the secretion of hormones.

Short Stature

A condition characterized by height considerably below the average for the age and sex of an individual.