Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts.

Increase = I; Decrease=D; No effect= N

Haltom Co. uses the allowance method to account for uncollectible accounts. Show how the adjusting entry to recognize uncollectible accounts expense would affect the elements of Haltom's financial statements.

Assets:

Liabilities:

Equity:

Revenues:

Expenses:

Net income:

Cash flow: