On December 31, Year 1, Kardashian Company recorded an adjusting entry to recognize uncollectible accounts expense. Kardashian had credit sales of $547,000 and estimates uncollectible accounts expense to be one percent of credit sales. Which of the following shows how this entry will affect Kardashian?s financial statements?

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Balance Sheet Assets = Liab. + (5,470) NA Equity (5,470) Rev. NA Income Statement Exp. = 5,470 Net Inc. (5,470) Statement of Cash Flows (5,470) OA Assets (5,470) Balance Sheet Liab. + Equity NA (5,470) Rev. ΝΑ Income Statement Exp. 5,470 = Net Inc. (5,470) Statement of Cash Flows ΝΑ Assets (5,470) Balance Sheet Liab. + Equity NA (5,470) Rev. NA Income Statement Exp. 5,470 = Net Inc. (5,470) Statement of Cash Flows (5,470) FA Balance Sheet Assets = Liab. + Equity (5,470) (5,470) ΝΑ Rev. ΝΑ Income Statement Exp. = 5,470 Net Inc. (5,470) Statement of Cash Flows ΝΑ Balance Sheet Assets = Liab. + (5,470) NA Equity (5,470) Rev. NA Income Statement Exp. = 5,470 Net Inc. (5,470) Statement of Cash Flows (5,470) OA Assets (5,470) Balance Sheet Liab. + Equity NA (5,470) Rev. ΝΑ Income Statement Exp. 5,470 = Net Inc. (5,470) Statement of Cash Flows ΝΑ Assets (5,470) Balance Sheet Liab. + Equity NA (5,470) Rev. NA Income Statement Exp. 5,470 = Net Inc. (5,470) Statement of Cash Flows (5,470) FA Balance Sheet Assets = Liab. + Equity (5,470) (5,470) ΝΑ Rev. ΝΑ Income Statement Exp. = 5,470 Net Inc. (5,470) Statement of Cash Flows ΝΑ

Answer rating: 100% (QA)

Explanation The uncollectible accounts expense is 5470 547000 x 1 ie Cred... View the full answer