Question: During the current year, TechCom concluded that a customer's $ 4 , 4 0 0 account receivable was uncollectible and that the account should be

During the current year, TechCom concluded that a customer's $4,400 account receivable was uncollectible and that the account should be written off. What effect will this write-off have on TechCom's current year net income and balance sheet assuming the allowance method is used to account for bad debts?
Question 29 options:
1)
No effect on net income; decrease in total assets
2)
Decrease in net income; decrease in total assets
3)
Decrease in net income; no effect on total assets
4)
Increase in net income; no effect on total assets
5)
No effect on net income or on total assets

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