Cambridge Co

Multiple Choice

Cambridge Co.uses the allowance method.During January 2019,Cambridge writes off a $640 customer account balance when it becomes clear that the customer will never pay.The entry to record the write-off will:

A) decrease total assets by $640.
B) decrease net income in 2019 by $640.
C) decrease net accounts receivable by $640.
D) not affect expenses in 2019.