Which of the following does not occur when a company receives additional information that requires it to increase its expectations of uncollectible accounts receivable?

Question

Quizplus · Accepted Answer

When a company expects more accounts receivable to be uncollectible, it increases its allowance for doubtful accounts, not decreases it. This adjustment reflects a higher anticipated loss from uncollectible accounts, which increases the bad debts expense, reduces net income, and lowers the net accounts receivable, but does not decrease the allowance account.

Which of the Following Does Not Occur When a Company