Momentum Products Inc.just recorded an adjusting journal entry for the current year's estimate of bad debts.Assuming all else is equal,this adjusting journal entry will cause:

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The journal entry includes a debit to Bad Debt Expense,which increases expenses and decreases (rather than increases)net income.The entry also includes a credit to Allowance for Doubtful Accounts,a contra-asset account,which decreases net accounts receivable.The accounts receivable turnover ratio is calculated by dividing net sales revenue by average net receivables.Since this entry decreases average net receivables,the receivables turnover ratio will increase.