The entry to write off an account receivable under the allowance method will ________.
A) reduce net income
B) have no effect on net income
C) increase total assets
D) increase net income

Question

Quizplus · Accepted Answer

Writing off an account receivable under the allowance method involves reducing both the accounts receivable and the allowance for doubtful accounts. This action has no effect on net income because the expense was already recognized when the allowance was initially estimated.

The Entry to Write Off an Account Receivable Under the Allowance