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

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

Credit sales during the year $2,100,000
Accounts receivableDecember 31, 2017 295,000
Allowance for doubtful accountsDecember 31, 2017 28,000
Bad 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 stay the same.

b.Net accounts receivable increase.

c.Net accounts receivable decrease.

d.Net accounts receivable both increase and decrease.

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