A Company Had Sales Revenue of $13,900 in the First

Multiple Choice

A company had sales revenue of $13,900 in the first quarter (Q1) and $11,500 in the second quarter (Q2) .The company's expenses (including bad debt expense) were $7,300 in Q1 and $6,900 in Q2.If the company raised its bad debt expense estimate by $800 in Q1 and lowered it by $800 in Q2,which of the following would be true assuming all else equal?

A) Q1 net income would fall $800 and Q2 net income would rise $1,600.
B) Q1 net income would fall $1,600 and Q2 net income would rise $1,600.
C) Q1 net income would fall $800 and Q2 net income would rise $800.
D) Q1 net income would fall $1,600 and Q2 net income would rise $800.