For each transaction listed below, indicate the effect on net income and the net realizable value of accounts receivable. Enter the number corresponding to your answer in the box provided. Answer choices may be used once, more than once, or not at all.

Question 7 options:

	ABC Company recorded bad debt expense for the year
	ABC Company wrote off an account receiveable as uncollectible
	ABC Company sold inventory to a customer on account (i.e., on credit)
	ABC Company received payment from a customer that it had written-off previously (i.e., recorded a recovery)

1.	increase net income; increase net realizable value
2.	decrease net income; decrease net realizable value
3.	no effect on net income; no effect on net realizable value
4.	increase net income; decrease net realizable value
5.	decrease net income; increase net realizable value
6.	no effect on net income; increase net realizable value
7.	no effect on net income; decrease net realizable value
8.	increase net income; no effect on net realizable value
9.	decrease net income; no effect on net realizable value