On October 12 of the current year, a company determined that a customer's account receivable...
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Accounting
On October 12 of the current year, a company determined that a customer's account receivable was uncollectible and that the account should be written off. Assuming the allowance method is used to account for bad debts, what effect will this write-off have on the company's net income and total assets?
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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