Question

Recording bad debt expense: (Select all that apply.)

a. increases expenses
b. increases net income
c. decreases net income
d. decreases assets
e. decreases expenses
f. increases assets

Answer 1

Recording bad debt expense increases expenses, decreases net income, and decreases assets on a company's financial statement.

Step-by-step explanation:

Recording bad debt expense on a company’s financial statement impacts the accounting equations in a couple of ways:

Therefore, the correct answers are that recording bad debt expense: a. increases expenses, c. decreases net income, and d. decreases assets.