When the allowance method for accounting for uncollectible receivables is used, net income is reduced when a specific receivable is written off.

Name: When the allowance method for accounting for uncollectible receivables is used, net income is reduced when a specific receivable is written off.
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Under the allowance method, net income is not directly affected when a specific receivable is written off because the expense was already recognized when the allowance for doubtful accounts was established.

When the Allowance Method for Accounting for Uncollectible Receivables Is