Yes and yes, you can verify this with this simple code.
public static void main(String[] args) {
ArrayList<String> list = new ArrayList<>();
for (int i = 0; i < 10; i++) {
list.add("" + i);
}
System.out.println(list.size() + " " + list);
list.set(0, null);
System.out.println(list.size() + " " + list);
}
10 [0, 1, 2, 3, 4, 5, 6, 7, 8, 9]
10 [null, 1, 2, 3, 4, 5, 6, 7, 8, 9]