Which of the following reflects the effect of the year-end adjusting entry to record estimated uncollectible accounts expense?
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? 
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 increases expenses, which decreases net income and equity. It does not affect the statement of cash flows.

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