During 2015, Oldham Corporation, Which Uses the Allowance Method of Accounting

Multiple Choice

During 2015, Oldham Corporation, which uses the allowance method of accounting for doubtful accounts, recorded a provision for bad debt expense of $35,000 and in addition it wrote off, as uncollectible, accounts receivable of $10,000. As a result of these transactions, net cash flows from operating activities would be calculated (indirect method) by adjusting net income with a

A) $35,000 increase.
B) $10,000 increase.
C) $25,000 increase.
D) $25,000 decrease.