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 income statement accounts.
C)affects only income statement accounts.
D)affects either statement of financial position or income statement accounts.

Question

Quizplus · Accepted Answer

Under the allowance method, writing off an uncollectible account affects only the statement of financial position accounts by reducing both accounts receivable and the allowance for doubtful accounts, with no impact on the income statement.

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