Under the allowance method of accounting for uncollectible receivables, writing off an uncollectible account
A) affects only income statement accounts
B) is not an acceptable practice
C) affects only balance sheet accounts
D) affects both balance sheet and income statement accounts

Question

Quizplus · Accepted Answer

Writing off an uncollectible account under the allowance method affects only balance sheet accounts. It reduces the accounts receivable and the allowance for doubtful accounts, but it does not impact the income statement because the expense was already recognized when the allowance was initially estimated.

Under the Allowance Method of Accounting for Uncollectible Receivables, Writing