Question:Lundstrom & Co. began making sales on credit during 20X1. The Co. used the direct write-off method for uncollectible accounts. A material amount of uncollectible accounts resulting from the sales made during 20X1 were written off during 20X2. What was the effect of this write-off on the net income for 20X1 and 20X2?
     20X1           20X2 

A Overstate Overstate 
B Overstate Understate 
C Understate Overstate 
D Understate Understate 

+ Answer
C 

+ Explanation
answer not sure

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Md. Habib Ullah

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