On December 1, 2012, Alex's Drug Store concluded that a customer's $325 account receivable was uncollectible and that the account should be written off. What effect will this write-off have on Alex's 2012 net income and balance sheet totals assuming the allowance method is used to account for bad debts?
Decrease in net income; 

decrease in total assets Increase in net income; 

no effect on total assets No effect on net income; 

decrease in total assets No effect on net income; 

no effect on total assets

Answer rating: 100% (QA)

C no effect on total assets No effect on net income Allowance method of bad debts recognition is an ... View the full answer