On October 29 of the Current Year, a Company Concluded

question 100

Multiple Choice

On October 29 of the current year, a company concluded that a customer's $4,400 account receivable was uncollectible and that the account should be written off. What effect will this write-off have on this company's net income and total assets assuming the allowance method is used to account for bad debts?

• 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:

Electrical Charge

A physical property of matter that causes it to experience a force when placed in an electromagnetic field; comes in positive and negative forms.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons.

Axon

A long, slender projection of a nerve cell that typically conducts electrical impulses away from the neuron's cell body.

Soma

The body of a neuron, containing the nucleus and metabolic machinery necessary for maintaining cell functions.