What is the impact on the financial statement

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Question 1: ABC company had 8,000 accounts receivable on Dec. 31, 2019. However, the company estimated that 2,000 of them would become bad Debt. The company recorded the 2,000 as bad debt. What is the impact on the financial statement?

Select one or more:

Option a. Net income reduced by 2,000 and there is no impact on balance sheet.

Option b. No impact on income statement. Net value of receivables reduced by 2,000 on the balance sheet.

Option c. There is no impact on both balance sheet and income statement.

Option d. Net income reduced by 2,000 and the net value of receivables on balance sheet reduced by 2,000.

Reference no: EM132540697

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