12. Pumpkin Company writes off $500 of accounts receivable balance of Anna Twin. How will this write-off affect Pumpkin Company's total assets? a. This will have no net effect on total assets b. Total assets will increase c. Total assets will decrease 13. How does the journal entry to estimate uncollectible accounts impact the income statement? a. Decreases net income b. Increases net income C. No effect on the income statement 14. On which financial statements are capitalized expenditures included? a. Balance Sheet b. Income Statement c. Statement of Cash Flows d. Statement of Stockholders' Equity 15. In April, Stella's Sales received a $2,000 prepayment from a customer for services to be provided in June. How does this transaction impact Stella's April income statement? a. April's income statement will show an increase to expenses b. There will be no impact to the April income statement c. April's income statement will show an increase to revenue d. Both a and c are correct