TB MC Qu$.07-92($Static$)$ On October $12$ of the current year,...

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?

Multiple Choice

Decrease in net income; decrease in total assets.

Decrease in net income; no effect on total assets.

No effect on net income; no effect on total assets.

No effect on net income; decrease in total assets.

Increase in net income; no effect on total assets.