When an account is written off using the allowance method for uncollectible accounts, the
A)net realizable value of total accounts receivable will increase.
B)net accounts receivable will decrease.
C)allowance account will increase.
D)net accounts receivable will stay the same.

Question

Quizplus · Accepted Answer

When an account is written off using the allowance method, the specific account receivable is removed, and the allowance for doubtful accounts is decreased by the same amount, leaving the net accounts receivable unchanged.

When an Account Is Written Off Using the Allowance Method