For each transaction listed below, indicate the effect on the accounts receivable balance and the allowance for doubtful accounts balance. Answer choices may be used once, more than once, or not at all

Answer Choice: Accounts Receivable ( increase/decrease/no effect) Allowance for doubtful accounts (increase/decrease/no effect)

1) ABC Company recorded bad debt expense for the year

2) ABC Company wrote off an account receivable as uncollectible

3) ABC Company received payment from a customer that it had written-off previously (i.e., recorded a recovery)

4) ABC Company sold inventory to a customer on account (i.e., on credit)