Multiple Choice Question

The write$-$off of a specific credit customer's account

decreases Bad Debt Expense on the income statement and decreases the net receivable balance on the balance sheet

increases Bad Debt Expense on the income statement and increases the net receivable balance on the balance sheet

increases Bad Debt Expense on the income statement and decreases the net receivable balance on the balance sheet

has no effect on the income statement or the net receivable balance on the balance sheet