The financial statement effects for uncollectible accounts occur when the company writes off the account because that is when all the uncertainty is resolved.

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The financial statement effects for uncollectible accounts begin with the recognition of an allowance for doubtful accounts, which estimates future uncollectible amounts. This estimation process introduces the effects before the actual write-off, acknowledging the uncertainty in advance.

The Financial Statement Effects for Uncollectible Accounts Occur When the Company