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21-03-2024
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Effect of Doubtful Accounts on Net Income (Obj. 5). During its first year of operations, Mack's Plumbing Supply Co. had sales of $6,740,000, wrote off $48,600 of accounts as uncollectible. The effect of this write-off on net income is:

a) $48,600 increase
b) $48,600 decrease
c) No effect
d) Cannot be determined

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