Question 3 (1 point) The Baldwin Company uses the allowance method in accounting for uncollectible accounts. On June 1, Baldwin wrote off a $500 account of a customer. Writing off the account will: Decrease total assets by $500 Decrease net income by $500 Increase expenses by $500 Have no effect on total assets Previous Page Next Page Page 3 of 10 Question 4 (1 point) 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? Decrease in net income; no effect on total assets No effect on net income; no effect on total assets Decrease in net income; decrease in total assets Increase in net income; no effect on total assets No effect on net income; decrease in total assets