Which of the following reflects the effect of the year-end adjusting entry to record estimated uncollectible accounts expense using the allowance method?

A)Option A
B)Option B
C)Option C
D)Option D

Question

Which of the following reflects the effect of the year-end adjusting entry to record estimated uncollectible accounts expense using the allowance method?

A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Recording uncollectible accounts expense decreases assets (increases allowance for doubtful accounts)and stockholders' equity (retained earnings).It increases expenses,which decreases net income.It does not affect the statement of cash flows.

Which of the Following Reflects the Effect of the Year-End