If the retained earnings account increases from the beginning of the year to the end of the year, then

	additional investments (shares sold) are greater than reported losses.
	dividends were received by the firm.
	the reported net income is greater than dividends declared.
	the repored loss is less than dividends declared.

Under the allowance method for uncollectible accounts,

	the allowance for doubtful accounts increases, while accounts receivables decrease when writing off an uncollectible account.
	the bad debts expense is not recorded until there is proof of a customer default.
	bad debt expense increases, while allowance for doubtful accounts decreases when writing off an uncollectible account.
	the entry to write off an uncollectible account only involves statement of financial position accounts.

Under the allowance method for uncollectible accounts, the collection of an account that had been previously written off

	decreases net income in the period it is collected.
	requires a correcting entry to be made in the period in which the account was originally written off.
	increases net income in the period it is collected.
	does not affect net income in the period it is collected.

At year-end, an aging of a company's accounts receivable indicates that $4,200 is estimated to be uncollectible. If Allowance for Doubtful Accounts (before adjustments) has a $800 credit balance, the adjustment to record bad debts for the period will require a

	no year-end entry is required, entries are only made when an account is determined to be uncollectible.
	debit to Bad Debt Expense for $4,200.
	debit to Allowance for Doubtful Accounts for $3,400.
	credit to Allowance for Doubtful Accounts for $5,000.
	debit to Bad Debt Expense for $3,400.