On December 31, Year 1, Kardashian Company recorded an adjusting entry to recognize uncollectible accounts expense. Kardashian had credit sales of $547,000 and estimates uncollectible accounts expense to be one percent of credit sales. Which of the following shows how this entry will affect Kardashian?s financial statements?

Balance Sheet Assets = Liab. + (5,470) NA Equity (5,470) Rev. NA Income Statement Exp. = 5,470 Net Inc. (5,470) Statement of Cash Flows (5,470) OA Assets (5,470) Balance Sheet Liab. + Equity NA (5,470) Rev. Income Statement Exp. 5,470 = Net Inc. (5,470) Statement of Cash Flows Assets (5,470) Balance Sheet Liab. + Equity NA (5,470) Rev. NA Income Statement Exp. 5,470 = Net Inc. (5,470) Statement of Cash Flows (5,470) FA Balance Sheet Assets = Liab. + Equity (5,470) (5,470) Rev. Income Statement Exp. = 5,470 Net Inc. (5,470) Statement of Cash Flows