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3. The Effect of Uncollectible Accounts

in Chapter 6 (Problem 3 of 4)

Under the allowance method of recognizing uncollectible accounts, the entry to write off an uncollectible account has what effect on the following accounts (indicate Increase, Decrease, or No Effect)

  1. Allowance for Doubtful Accounts
  2. Net Income
  3. Net Realizable Value of Accounts Receivable
Watch Solution (1:48) Hide Solution Reveal Solution
  1. Allowance for Doubtful Accounts - Decrease
  2. Net Income - No Effect
  3. Net Realizable Value of Accounts Receivable - No Effect

The Rest Of The Practice Problems

Click Here to View All Chapter 6 Problems at Once View
1 The Effect of Bad Debt Expense Easy
2 Calculating Bad Debts Moderate
3 The Effect of Uncollectible Accounts
You are here. 		Moderate
4 Using the Balance Sheet Method Hard
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Chapter 6 Videos

1 A/R and Bad Debts Introduction 7:09
2 Direct Method 4:15
3 The Allowance Method 8:56
4 Income Statement vs Balance Sheet Methods 13:14
5 Net Credit Sales 5:20
6 Write Offs and Reinstatements 8:26
Chapter 7 →