Question: The data presented below are for Falconi, Inc. for 2017. Credit sales during the year$2,100,000Accounts receivableDecember 31, 2017 $295,000Allowance for doubtful accountsDecember 31, 2017 28,000Bad

The data presented below are for Falconi, Inc. for 2017.

Credit sales during the year$2,100,000Accounts receivableDecember 31, 2017 $295,000Allowance for doubtful accountsDecember 31, 2017 28,000Bad debts expense for the year 17,000

What is the effect on net accounts receivable when Falconi records its estimate for bad debts expense using the allowance method?

a.Net accounts receivable decrease.

b.Net accounts receivable increase.

c.Net accounts receivable stay the same.

d.Net accounts receivable both increase and decrease.

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