A manager determines the amount of bad debt expense for the year should be $50,000. However, the manager decides to report bad debt expense of only $40,000. What are the effects of reporting bad debt expense of $40,000 instead of the correct amount of $50,000?

Answer rating: 100% (QA)

Reporting a lower amount of bad debt expense 40000 instead of the correct amount 50000 can have several effects on the financial statements and financ... View the full answer