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

question 40

Multiple Choice

On December 1,Year 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 Year 1 net income and balance sheet totals,assuming that the direct write-off method is used to account for bad debts?

• A) Net income and total assets will decrease.
• B) Net income will increase, but there will be no effect on total assets.
• C) There will be no effect on net income, but total assets will decrease.
• D) There will be no effect on net income or total assets.

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Definitions:

Labour Pool

The total number of individuals available for employment or work in a specific area or industry.

Work Force

The labor pool in employment; it comprises individuals engaged in or available for work, either in a country or in a specific sector.

Population Decline

A decrease in the number of individuals in a species or population, often due to environmental pressures, loss of habitat, or human activities.

Medical Services

Professional services provided by individuals in the healthcare industry to treat and maintain patients' physical and mental health.