Bond Company recorded bad debts expense of $35,000 and wrote off accounts receivable of $20,000 during the current year. The net effect of these two transactions on net income was

Bond Company recorded bad debts expense of $35,000 and wrote off accounts receivable of $20,000 during the current year. The net effect of these two transactions on net income was

Bond Company recorded bad debts expense of $35,000 and wrote off accounts receivable of $20,000 during the current year. The net effect of these two transactions on net income was




A. a decrease of $55,000.
B. a decrease of $35,000.
C. a decrease of $20,000.
D. no effect.



Answer: B