Ask Experts Questions for FREE Help !
Ask
    tanguayheidi's Avatar
    tanguayheidi Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 15, 2008, 04:01 PM
    The Allowance for Doubtful Accounts
    My question is "What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet?"
    delite's Avatar
    delite Posts: 202, Reputation: 3
    Full Member
    		  
    #2

    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)
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Allowance of Doubtful Accounts [ 1 Answers ]

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...

Allowance of Doubtful Accounts [ 3 Answers ]

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...

View more questions Search