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 direct write-off 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.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On October 12 of the current year, a company determined that a customer's account receivable was uncollectible and that the account should ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Economy a. gross investment equals depreciation economy b. depreciation exceeds gross investment economy c. gross investment exceeds depreciation refer to the information. positive net investment is occurring in:
Answers (1)
The project team working on the XK11 could not meet its deadline and was given an extension. When that same team was assigned the XK12, it was given a longer schedule to match those adjustments.
Answers (1)
Olav owns precision painting, a sole proprietorship. olav's liability is
Answers (1)
An accountant increases the price he charges for his services by 16 percent. In response, the demand for his services decreases by 14 percent.
Answers (1)
On January 4, Year 1, Ferguson Company purchased 480,000 shares of Silva Company directly from one of the founders for a price of $30 per share. Silva has 1,200,000 shares outstanding, including the Daniels shares.
Answers (1)
New Questions in Business
If shondra really wants to borrow alicia's shoes but she thinks she may refuse, the idea of the door-in-the-face technique states that shondra is more likely to get the shoes if she:
Answers (1)
Which of the following is not an example of a group responding to an incentive? a. Students attend class because of an attendance policy that reduces their grade for absences. b. Consumers buy more of a product when it is on sale at a reduced price.
Answers (1)
Ace Hardware purchased 15 shovels from Skill Company for $7.00 each. Ace's markup is 33% on selling price. What should Ace charge for the shovels? (Round to hundredths.)
Answers (1)
13. What entity is responsible for overseeing the accounting profession? a. The SEC b. The President c. The AICPA d. The IRS e. I do not know
Answers (2)
If it is known that the income elasticity of demand for the same good is 2.5, estimate the percentage change in demand if consumer income increases from $100 to $300.
Answers (1)