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On October 29 of the current year, a company concluded that a customer’s $4,400 account receivable was uncollectible and that the account should be written off

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On October 29 of the current year, a company concluded that a customer’s $4,400 account receivable was uncollectible and that the account should be written off. What effect will this write-off have on the company’s net income and total assets assuming the allowance method is used to account for bad debts?

1. 1. Decrease in net income; no effect on total assets
   2. No effect on net income; no effect on total assets
   3. Decrease in net income; decrease in total assets
   4. Increase in net income; no effect on total assets
   5. No effect on net income; decrease in total assets