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 allowance method is used to account for bad debts, what effect will this write-off have on the company's net income and total assets? Increase in net income; no effect on total assets Decrease in net income: decrease in total assets Decrease in net income, no effect on total assets No effect on net income; no effect on total assets No effect on net income: decrease in total assets Which of the following does not occur when a company receives additional information that requires it to increase its expectations of uncollectible accounts receivable? The allowance account is decreased Net income is reduced Bad debt expense is increased Accounts receivable (net) is reduced KASE uses the direct write-off method of accounting for uncollectible accounts. On May 3, KASE wrote off the $2,000 uncollectible account of its customer. The entry KASE makes to record the write off of the account on May 3 is: O Debit Accounts Receivable 2000; Credit Bad Debts Expense 2000 Debit Accounts Receivable 2000; Credit Cash 2000 Debit Cash 2000: Credit Accounts Receivable 2000 Debit Allowance for Doubtful Accounts 2000: Credit Accounts Receivable 2000 Debit Bad Debts Expense 2000; Credit Accounts Receivable 2000 KASE determines that the Allowance for Doubtful Accounts balance should be $800, and it currently has a Credit balance of $300, so you fund the account to bring it to the $800 balance. Which of the following is the correct journal entry for this type of transaction? Debit Allowance for Doubtful Accounts 500, Credit Bad Debts Expense 500 Debit Allowance for Doubtful Accounts 1100, Credit Bad Debts Expense 1100 O Debit Bad Debts Expense 800, Credit Allowance for Doubtful Accounts 800 Debit Bad Debts Expense 500, Credit Allowance for Doubtful Accounts 500 Debit Allowance for Doubtful Accounts 800, Credit Bad Debts Expense 800 Debit Bad Debts Expense 1100, Credit Allowance for Doubtful Accounts 1100