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View Full Version : The Allowance for Doubtful Accounts


tanguayheidi
Jan 15, 2008, 04:01 PM
My question is "What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet?"

delite
Jan 18, 2008, 11:55 PM
If you have a provision and you decrease (lower), your financial income will increase by same amount. When origanly set up income was decreased by the reserve.(retained earnings)