The post-closing trial balance contains only permanent accounts

A decrease in the balance of Accounts Receivable.

a. Operating b. Investing c. Financing d. Supplemental

Fenchurch Corp uses the direct write-off method to account for bad debts. What are the effects on the accounting equation of the entry to record the write-off of a customer's account balance?

a. Assets and liabilities decrease. b. Assets and owners' equity decrease. c. Owners' equity decrease and liabilities increase. d. No effect; assets increase and decrease by the same amount.