The Effect of Uncollectible Accounts Practice Problem

3. The Effect of Uncollectible Accounts

in Chapter 7 (Problem 3 of 4)

Moderate

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)

Allowance for Doubtful Accounts
Net Income
Net Realizable Value of Accounts Receivable

Allowance for Doubtful Accounts - Decrease
Net Income - No Effect
Net Realizable Value of Accounts Receivable - No Effect

	Click Here to View All Chapter 7 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

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
7	Notes Receivable	11:27

3. The Effect of Uncollectible Accounts

The Rest Of The Practice Problems

Chapter 7 Videos