Indicate How Each Event Affects the Elements of Financial Statements

Essay

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.Enter only one letter for each element.You do not need to enter amounts.

-On December 31,2016,Sparkes Co.estimated it had $12,000 of uncollectible accounts related to credit sales it made during the year.Sparkes,which uses the allowance method,made the proper adjusting entry on this date.Indicate the effects of the adjusting entry.