Q 8.6: what happens if the amount of uncollectible account expense is overstated at year end?

What happens if the amount of uncollectible account expense is overstated at year end? Net accounts receivable with be understated.

If one aspect of the expensive account is overstated the other will be understated typically to make up for the incorrect documentation of money somewhere. To find the net receivables you subtract the allowance for doubtful accounts from the gross amount of accounts receivable outstanding.