if your supervisor tells you to change the aging category of a large account from over 120 days to current status and prepare a new invoice to the customer with the revised date that agrees with this new category this will change the required allowance from for uncollectible accounts from $180, 000 to $235,000 how do you think this misstatement of funds will impact your income statement and your balance sheet?
if your supervisor tells you to change the aging category of a large account from over 120 days to current status and prepare a new invoice to the customer with the revised date that agrees with this new category this will change the required allowance from for uncollectible accounts from $180, 000 to $235,000 how do you think this misstatement of funds will impact your income statement and your
Allowance for uncollectible accounts is provision created for future losses as the company expect this much amount of debtor will default in making the payment for product and services. Since this is a loss for company the amount of allowance for uncollectible accounts is shown in expense side of Income Statement and this amount decrease the Balance of Account Receivable in Balance Sheet.
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