What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet? My book doesn't give me a very good explanation.:confused:

What are ways you think that you could get customers to pay up and lower that rate? Remember, keep it business like and do NOT write rude or threat containing letters. Because of rules here I won't straight out give you an answer till you try to give one but here is a hint; what do customers always try to find in papers, ads, and other things sent in your mail and that makes them want to go buy it (used probably mostly on grocery items). Try and figure that one out :) This is one of the ways to get that % down.

Lowering the estimate for doubtful accounts would mean more net income since doubtful accounts are already cosidred as exp.

Ohhhhh, sry I read you post wrong. I thought you said HOW would I lower estimated expense for doubtful accounts. Bhet has the right answer ;).