An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 debit balance, the adjustment to record bad debts for the period will require what type of entry?

My question is "What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet?"

Based on the following selected data, journalize the adjusting entries as of December 31 of the current year: Estimated uncollected accounts at December 31, $6940, based on an aging of accounts receivable. The balance of Allowance for Doubtful Accounts at December 31 was $600 (debit). What is...