Under the allowance method for uncollectible accounts, when a speciﬁc account is written off
A) total assets will be unchanged.
B) net earnings will decrease.
C) total assets will decrease.
D) total assets will increase.

Question

Quizplus · Accepted Answer

When a specific account is written off under the allowance method, total assets remain unchanged because the write-off reduces both the accounts receivable and the allowance for doubtful accounts by the same amount, with no immediate impact on total assets.

Under the Allowance Method for Uncollectible Accounts, When a Speciﬁc