Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   Estimate for doubtful accounts (https://www.askmehelpdesk.com/showthread.php?t=207446)

  • Apr 19, 2008, 08:23 AM
    doerit48
    Estimate for doubtful accounts
    What effect does lowering the estimate for doubtful accounts have on the income statement and/or balance sheet?
  • Apr 21, 2008, 03:51 PM
    MaggieMouse
    Here is the entry for recording the estimate-Dr. Expense(income statement a/c), Cr. Allowance(balance sheet a/c)

    Lowering the estimate will lower the expense on income statement, which will higher the income.

    Also, lowering the estimate will lower the allowance, a contra-asset account on the balance sheet, it will lead to a higher accounts receivable amount, which will higher the asset as a result.

  • All times are GMT -7. The time now is 07:36 AM.