How does the year-end adjusting entry to recognize uncollectible accounts expense affect the elements of the financial statements

The effects on the elements of the financial statements by the recognition of uncollectible accounts through the year-end adjusting entry are:

1. The Uncollectible Expense account (a loss) is increased or decreased as the case may be.

2. The Allowance for Uncollectible Accounts (a contra entry to the Accounts Receivable - a current asset)| is increased or decreased as the case may be.

Explanation:

With the above, Expenses and the Accounts Receivable are affected with any year-end adjusting entry to recognize uncollectible accounts expense.  If the Allowance for Uncollectible Accounts is to be increased, then the Uncollectible Expense will be debited while the Allowance for Uncollectible Accounts is credited.  When this happens, the net Accounts Receivable is reduced.  The reverse is the case when the Allowance for Uncollectible Accounts is to be reduced.