Indicate How Each Event Affects the Elements of Financial Statements $$\text { Increase } = \mathrm { I } \quad\text { Decrease } = \mathrm { D } \quad\text { No Effect } = \mathrm { N }$$

question 36

Short Answer

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. You do not need to enter amounts. $$\text { Increase } = \mathrm { I } \quad\text { Decrease } = \mathrm { D } \quad\text { No Effect } = \mathrm { N }$$
Potter Co. used the allowance method to account for uncollectible accounts expense. On June 20, 2014, Potter wrote off an uncollectible account in the amount of $8,000. Show the effect of this write-off.

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Definitions:

Physical Reactions

Bodily responses to stimuli, which can include reactions like sweating, shaking, or increased heart rate.

Sensory Stimulus

Any object or event that is input to the senses, leading to a response or recognition from the body or brain.

Reflex

An automatic, involuntary response to a stimulus without the involvement of conscious thought.

Action Potential

A temporary reversal of an electrical charge across the membrane of a nerve cell that results in the transmission of an electrical impulse.