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Howdy! I need help answering the following question! I have included a screen shot with all the information given. If someone could help me out

Howdy! I need help answering the following question! I have included a screen shot with all the information given. If someone could help me out that would be great:)

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What effect does the recognition of bad debt expense have on the net realizable value of the accounts receivable and on net income? O A. Increase, Increase O B. Decrease, Decrease O C. No Effect, No Effect D. Increase, Decrease O E. Decrease, No Effect

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