Under the allowance method, the write-off of an uncollectible account ________.
A) has no effect on the allowance for uncollectible accounts
B) has no effect on net income
C) increases expenses
D) decreases total assets

Question

Quizplus · Accepted Answer

Under the allowance method, the write-off of an uncollectible account reduces both the accounts receivable and the allowance for doubtful accounts, leaving net income unaffected.

Under the Allowance Method, the Write-Off of an Uncollectible Account