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Under the allowance method, when a year-end adjustment is made for estimated uncollectible accounts A. Liabilities decrease.B. Net Income is unchanged.C. Total Assets are unchanged.D. Total Assets decrease

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mltn1980

Answer:

D. Total Assets decrease

Explanation:

When the company estimates and record the adjusting entry at the end of the accounting period, the entry is registered in the income statement account's Bad Debts Expense and a credit in the asset's account Allowance for Doubtful Accounts, the impact involve the Current Assets and the Income Statement.

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