Indicate how each event affects the financial statements. Use the following letters to record your answer in the box shown below. If an event increases one account and decreases another account equally within the same element, record I/D. If an event has no impact on the element, record NA. You do not need to enter dollar amounts.
Increase = I Decrease = D Not Affected = NA
Cole Company uses the direct write-off method. The company wrote off an uncollectible account in the amount of $4,000. The write-off is immaterial in amount.

Question

Quizplus · Accepted Answer

The Answer of Indicate how each event affects the financial statements. Use the following letters to record your answer in the box shown below. If an event increases one account and decreases another account equally within the same element, record I/D. If an event has no impact on the element, record NA. You do not need to enter dollar amounts.
Increase = I Decrease = D Not Affected = NA
Cole Company uses the direct write-off method. The company wrote off an uncollectible account in the amount of $4,000. The write-off is immaterial in amount.

Indicate How Each Event Affects the Financial Statements