On November 2, 2014, Quaint General Store Concluded That a Customer's

question 73

Multiple Choice

On November 2, 2014, Quaint General Store concluded that a customer's $400 account receivable was uncollectible and that the account should be written off.What effect will this write­off have on Quaint's 2014 net income and balance sheet totals assuming the allowance 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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