What is the effect on net income in 2023 as a result

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Question: Since most customers generally pay their accounts within the discount period, the business uses the direct method to account for bad debts. During the current year, ended December 31, 2022, the business had a total of $400,000 in credit sales. On January 31, 2023, one of the customers contacted to say she would not be able to pay her account balance of $7,200. Nine months later, on October 31, 2023, the same customer again contacted the business to say she had received some money and was able to repay 40% of the amount previously owed right away and the rest by the end of the next month (November 30, 2023). What is the effect on net income in 2023 as a result of the write off and subsequent pay off?

Reference no: EM133496284

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