On December 1, 2012, Alex's Drug Store concluded that a customer's $325 account receivable was uncollectible and that the account should be written off. What effect will this write-off have on Alex's 2012 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


D

Business

You might also like to view...

Researchers at PPG Industries Inc. spent considerable time, effort, and money developing a bluish windshield that would let in filtered sunlight but block out heat. PPG had not conducted market research before deciding to design the windshield

Moreover, the windshield is priced higher compared to the other brands. The company has now introduced the windshield in the market and is hoping that the customers will like it. PPG most likely has a(n)_____orientation. a. exchange b. production c. sales d. promotion

Business

Describe how your philosophy of leadership makes you the best candidate for the job.

What will be an ideal response?

Business

The shortest route network problem could help identify the best plan for running cables for televisions throughout a building

Indicate whether this statement is true or false.

Business

___________ are issued by administrative agencies to interpret and implement statutes enacted by a legislature

a. Regulations b. Interpretations c. Reviews d. Acknowledgements

Business