State the Effect on Net Income of Each of the Following

question 2

Essay

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

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Definitions:

Wage

The monetary compensation paid by an employer to an employee in exchange for work done.

Time Wage

A method of wage payment where employees are paid based on the number of hours they have worked.

Exit Interview

A meeting conducted with an employee leaving an organization, aimed at gaining insights into the work environment and improving retention.

Human Resources

The division of a company focused on activities related to employees, including hiring, training, and benefits.