Prodigy Inc. has a new CEO who just joined the company in November $2021.$ She would like to

show quick improvements in company profitability in the subsequent years. The company CFO

suggests substantially increasing allowance for uncollectible accounts for the fiscal year that ends

December $31,2021.$

a$.$ What financial statement accounts are affected?

b$.$ What effect does it have on net income for the period?

c$.$ What effect does it have on the balance sheet for the period?

d$.$ If in $2022$ managers conclude that they overestimated the allowance in $2021,$ what effect

will it have on the income statement in $2022?$

e$.$ How do the CEO and CFO succeed in shifting income from one period to another by

using the allowance for uncollectible accounts?