On October 12 of the Prior Year,a Company Determined That

Multiple Choice

On October 12 of the prior year,a company determined that a customer's account receivable was uncollectible and that the account should be written off.Unexpectedly,on March 1 of the current year,the customer paid the account in full.Assuming the direct write-off method is used to account for bad debts,what effect will this recovery 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; increase in total assets.
E) No effect on net income; decrease in total assets.