1- 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 direct write-off method is used to account for bad debts, what effect will this write-off have on the company's net income and total assets? Select one: a. Decrease in net income; no effect on total assets. b. No effect on net income; no effect on total assets. c. Decrease in net income; decrease in total assets. d. Increase in net income; no effect on total assets.

2- Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. Garza Company's net sales equals: Select one: a. $133,000. b. $5,200. c. $135,000. d. $129,800.