State the Effect on Net Income of Each of the Following

Essay

State the effect on net income of each of the following independent transactions. State your answer as: increase, decrease, or no effect.
$$\begin{array} { | c | c | } \hline { \text { Transaction } } & \begin{array} { c } \text { Effect on Net } \\\text { Income }\end{array} \\\hline \text { 1. Prepare adjusting entry for uncollectible } & \\\text { accounts. } & \\\hline \text { 2. Write-off a customer's account. } & \\\hline \text { 3. Reinstate a customer's account and } & \\\text { collect the balance due. } & \\\hline\end{array}$$