Of have no effect on) a company's net income 12. Under the allowance method if a company collects cash on an account that it previously wrote-off as uncollectible, it will make the following journal entries: (A) The company will first reverse the initial write-off: Debit Credit Accounts receivable XX Allowance for doubtful accounts XX (B) The company will then record the cash collection of the account: Debit Credit Cash XX Accounts receivable XX These journal entries will (increase, decrease or have no effect on) a company's total assets. These journal entries will (increase, decrease or have no effect on) a company's net income. Why should both of the above journal entries be made rather than a single journal entry? 13. The normal account balance for Allowance for Doubtful Accounts is a credit balance, and a company will have a credit balance in this account on its adjusted trial balance. However, on its unadjusted trial balance, a company could either have a credit balance or a debit balance in Allowance for Doubtful Accounts. What could cause a company to have a debit balance in Allowance for Doubtful Accounts on its unadjusted trial balance