The Data Presented Below Are for Falconi,Inc -What Is the Effect on Net Accounts Receivable When Falconi

question 170

Multiple Choice

The data presented below are for Falconi,Inc.for 2017.
$\begin{array}{lr}\text { Credit sales during the year } & \$ 2,100,000 \\\text { Accounts receivable-December } 31,2017 & 295,000 \\\text { Allowance for doubtful accounts-December } 31,2017 & 28,000 \\\text { Bad debts expense for the year } & 17,000\end{array}$

-What is the effect on net accounts receivable when Falconi records its estimate for bad debts expense using the allowance method?

• A)Net accounts receivable decrease.
• B)Net accounts receivable increase.
• C)Net accounts receivable stay the same.
• D)Net accounts receivable both increase and decrease.

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