Johnson Company uses the allowance method to account for uncollectible accounts
receivable. After recording the estimate of uncollectible accounts expense for the current
year, Johnson decided to write off in the current year the $10,000 account of a customer
who had filed for bankruptcy. What effect does this write-off have on the company?s current
net income and total current assets, respectively?
..Net Income...Total Current Assets

Decrease DecreaseNo effect DecreaseDecrease No effectNo effect No effect