If the amount of uncollectible accounts expense is understated at year end,

Question

Quizplus · Accepted Answer

If the amount of uncollectible accounts expense is understated at year-end, it means that the company has not estimated enough for potential bad debts. This would result in an understatement of the allowance for uncollectible accounts, which would lead to an overstatement of net accounts receivable. As a result, choice A is the correct answer. Total liabilities and net income will not be impacted.

If the Amount of Uncollectible Accounts Expense Is Understated at Year