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    alexisandme7's Avatar
    alexisandme7 Posts: 1, Reputation: 1
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    #1

    Feb 26, 2008, 01:52 AM
    Doubtful Accounts
    What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet?
    Gekko's Avatar
    Gekko Posts: 347, Reputation: 77
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    #2

    Feb 26, 2008, 02:55 AM
    Lowering your provision i.e. Reversing some of your previous Doubtful Debt estimate, will Increase your Income for the period CR Doubtful Debt reclaim (Or something like that), and it will reduce your CR Provision

    Before
    Debtor 100
    Provision Doubt Debt (40)
    Accum Profit (60)

    After
    Debtor 100
    Provision Doubt Debt (20)
    Income (20)
    Accum Profit (60)
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