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If management intentionally underestimates bad debt expense (i.e. management underestimates uncollectible accounts), then: Net income is overstated and net accounts receivable are understated Net income
If management intentionally underestimates bad debt expense (i.e. management underestimates uncollectible accounts), then:
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Net income is overstated and net accounts receivable are understated
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Net income is overstated and net accounts receivable are overstated
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Net income is understated and net accounts receivable are understated
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Net income is understated and net accounts receivable are overstated
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