On October 12 of the Current Year, a Company Determined

Multiple Choice

On October 12 of the current year, a company determined that a customer's account receivable was uncollectible and that the account should be written off.
- Assuming the allowance method is used to account for bad debts, what effect will this write-off have on the company's net income and total assets?

A) Decrease in net income; decrease in total assets.
B) Increase in net income; no effect on total assets.
C) Decrease in net income; no effect on total assets.
D) No effect on net income; no effect on total assets.
E) No effect on net income; decrease in total assets.