Under the allowance method for uncollectible accounts, writing off an uncollectible account
A)affects only statement of financial position accounts.
B)affects both statement of financial position and statement of income accounts.
C)affects only statement of income accounts.
D)affects either statement of financial position or statement of income accounts.

Question

Quizplus · Accepted Answer

Writing off an uncollectible account under the allowance method affects only the statement of financial position accounts. It reduces the accounts receivable and the allowance for doubtful accounts, but it does not impact the income statement because the expense was already recognized when the allowance was estimated.

Under the Allowance Method for Uncollectible Accounts, Writing Off an Uncollectible