Asgard Fashion Company uses the allowance method to account for bad debts.

1. Indicate the effect of each of the following transactions on Accounts Receivable, the Allowance for Uncollectible Accounts, net Accounts Receivable, and Bad Debt Expense. Use (+) for increase, (-) for decrease, and (0) for no effect.

Allowance for Net Bad

Accounts Uncollectible Accounts Debt

Receivable Accounts Receivable Expense

a. A customer pays

his account

receivable. ________ ________ ________ ________

b. 5% of $100,000 in

Accounts Receivable

is estimated to be

uncollectible (the

balance in allowance

for uncollectible

accounts is a debit

of $400. ________ ________ ________ ________

c. An account

receivable is

reinstated. ________ ________ ________ ________