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What happens if the amount of Bad Debt Expense is overstated at year end? A : Stockholders' equity will be overstated. B : Allowance for Doubtful Accounts will be understated. C : Net Accounts Receivable will be understated. D : Net income will be overstated.

Respuesta :

Answer:

Net Accounts Receivable will be understated.

Explanation:

Any uncollectible accounts receivable are unpaid debt by customers and constitute a bad debt expense for the company. As a result of not taking into account uncollectible customer accounts, overstating accounts receivable understates a company's bad debt expense.

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