For each of the following transactions, indicate how each will affect the elements of the accounting equation by answering increase, decrease or no effect.
a. The company uses the allowance method and writes off specific receivables that have been identified as uncollectible.
b. The company uses the allowance method and records the bad debts expense for the year.
c. The company receives a 1-year promissory note from a customer in payment of his account because he needs
additional time to pay.
d. The company receives a payment from a customer on his account which had been previously written off as
worthless.
e. The company accrues interest earned on the note received in (c).

Question

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The Answer of For each of the following transactions, indicate how each will affect the elements of the accounting equation by answering increase, decrease or no effect.
a. The company uses the allowance method and writes off specific receivables that have been identified as uncollectible.
b. The company uses the allowance method and records the bad debts expense for the year.
c. The company receives a 1-year promissory note from a customer in payment of his account because he needs
additional time to pay.
d. The company receives a payment from a customer on his account which had been previously written off as
worthless.
e. The company accrues interest earned on the note received in (c).

For Each of the Following Transactions, Indicate How Each Will