Your company estimates bad debit expense as a percentage of Accounts Receivable that will be...
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Accounting
Your company estimates bad debit expense as a percentage of Accounts Receivable that will be uncollectible, which comes to $20,000 for the current year. The Allowance for Doubtful Accounts has a credit balance of $14,000. If no adjusting entry is recorded at year end how will the financial statements be affected?
a. net income overstated assets overstated
b. net income overstated assets understated
c. net income understated assets overstated
d. net income understated assets understated
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