Answer :
Final answer:
The decision not to write off 7000 in receivables increased the reported net income by 7000.
Explanation:
The decision not to write off the 7000 in receivables would directly impact the reported net income. In the simplest terms, writing off a receivable means that the company has decided it won't be able to collect that money, and so it reduces both its total receivables and income by that amount. By making the decision not to write these off, the company keeps the total receivables and income at a higher level, meaning that the reported net income is also higher by that same 7000 amount. In essence, reported net income was 7000 more than it would have been if the receivables had been written off.
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