What effect does the recognition of bad debt expense have on the net realizable value of the accounts receivable and on net income? Effect on Net Realizable Value: Increase Effect on Net Income: Increase Effect on Net Realizable Value: Decrease Effect on Net Income: Decrease Effect on Net Realizable Value: No Effect Effect on Net Income: No Effect Effect on Net Realizable Value: Increase Effect on Net Income: Decrease Effect on Net Realizable Value: Decrease Effect on Net Income: No Effect The writing off of an uncollectible account when using the allowance method: Reduces assets and reduces stockholders' equity Reduces assets and reduces liabilities Increases assets and increases stockholders' equity Increases assets and increases liabilities Has no effect on the accounting equation On January 1,2013 , a company's Accounts Receivable balance was $100,000, and the balance in the Allowance for Doubtful Accounts was a credit balance of $5,000. During 2013 , the company recorded the following transactions: If the Company estimates 1% of credit sales to be uncollectible, the bad debt expense for 2013 would be $200 $1,100 $1,200 $1,180 $1,300 At December 31,2012 , SPK Inc. reported the following information on its balance sheet: During 2013 , the company had the following transactions related to receivables: The balance in the Accounts Receivable account before any adjusting journal entries would be: $990,000 $1,050,000 $930,000 $978,000 $1,002,000 Mark each of the following statements as either true or false and select the correct answer. An entry to write-off an uncollectible account does not change the net realizable value of accounts receivable. When recording an adjusting entry for bad debt, a debit to Bad Debt Expense and a credit to the Allowance for Doubtful Accounts will affect the balance sheet, but not the Income Statement. Sales Returns and Allowances should not be included as a selling expense True, True, True True, False, True True, False, False False, False, False False, True, True