When an account is written off using the allowance method for uncollectible accounts, the
A) carrying amount of total accounts receivable will increase.
B) net accounts receivable will decrease.
C) allowance account will increase.
D) net accounts receivable will stay the same.

Question

Quizplus · Accepted Answer

When an account is written off using the allowance method, the specific account receivable is removed from the accounts receivable balance, and the allowance for doubtful accounts is decreased by the same amount. This results in no change to the net accounts receivable.

When an Account Is Written Off Using the Allowance Method