When the allowance method is used to account for bad debts, the write-off of an account receivable results in an expense at the time of write-off.

Question

Quizplus · Accepted Answer

The write-off of an account receivable using the allowance method does not result in an expense at the time of write-off because the expense was already recognized when the allowance for doubtful accounts was established.

When the Allowance Method Is Used to Account for Bad