Under the allowance method of recognizing uncollectible accounts, the entry to write off an uncollectible account
A) increases the allowance for doubtful accounts.
B) has no effect on the allowance for doubtful accounts.
C) has no effect on net income.
D) decreases net income.

Question

Quizplus · Accepted Answer

The write-off of an uncollectible account under the allowance method reduces both accounts receivable and the allowance for doubtful accounts, having no effect on net income.

Under the Allowance Method of Recognizing Uncollectible Accounts, the Entry