Chapter 6, Problem 4MCQ

When a company using the allowance method writes off a specific customer’s $100,000 account receivable from the accounting system, which of the following statements are true?

1. 1. Total stockholders’ equity remains the same.
2. 2. Total assets remain the same.
3. 3. Total expenses remain the same.
4. a. 2
5. b. 1 and 3
6. c. 1 and 2
7. d. 1,2, and 3