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
d
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