Answer:
a. Decreases the net income
b. Decreases the Net account receivable balance
Step-by-step explanation:
To write off the uncollectible account we pass the following journal entry
Dr. Allowance for doubtful accounts $x,xxx
Cr. Accounts receivables $x,xxx
The above entry has the following impacts.
a.
It decreases the net income value as the Allowance for uncollectible account balance reduces as a result. At the end of the period the adjustment of Allowance uncollectible accounts of increases which is recorded as below
Dr. Bad Debt Expense $x,xxx
Cr. Allowance for uncollectible accounts $x,xxx
b.
It decreases the accounts receivable balance as we credit the account receivable balance to remove the outstanding balance of uncollectible accounts.