Karma's entry required to recognize the uncollectible accounts expense for 2013 will
A)increase total assets and retained earnings.
B)decrease total assets and retained earnings.
C)decrease total assets and increase net income.
D)increase total assets and decrease net income.

Question

Quizplus · Accepted Answer

Recognizing uncollectible accounts expense decreases assets by increasing the contra-asset allowance for doubtful accounts and increases expenses, which decreases net income and retained earnings.

Karma's Entry Required to Recognize the Uncollectible Accounts Expense for 2013