On December 1,2012,Anson's Drug Store concluded that a customer's $325 account receivable was uncollected and that the account should be written off.What effect will this write-off have on the company's 2012 net income and balance sheet totals assuming the direct write-off method is used to account for bad debts?

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With the direct write-off method, the uncollectible account is recognized as an expense in the period it is written off. This will decrease the net income for the period. Additionally, since the customer's account receivable is no longer considered an asset, the total assets on the balance sheet will also decrease.

On December 1,2012,Anson's Drug Store Concluded That a Customer's $325