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    questionsgalor Posts: 5, Reputation: 1
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    #1

    Apr 19, 2007, 01:10 PM
    Effects of lowering the estimate for doubtful acconts
    What effect does lowering the estimate for doubtful accounts have on an income statement and balance sheet?
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    tickle Posts: 23,796, Reputation: 2674
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    #2

    Apr 19, 2007, 02:06 PM
    It probably means a huge debit. If you have too many doubtful accounts that are hard to collect then you have a situation that borders on bankruptcy. I don't have any expertise in this field but it is evident to me.
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