Uncollectible Account omission, company, revenue, someone, amount

ayodayo

Kimble Corporation does not record an estimate for the amount of revenues that may be uncollectible. What effect will this omission have on the company’s net income and labilities.
NI Liabilities
A. No effect/No effect
B. No effect/Overstate
C. Overstate/No Effect
D. Overstate/Overstate
The answer is C. When they say uncollectible revenue are they referencing bad debt expense which would lower NI. Can someone expand upon this? thanks