The entry to recognize the write-off of an uncollectible account will
A) increase total assets and total equity.
B) increase total assets and decrease total equity.
C) decrease total assets and total equity.
D) not affect total assets or total equity.

Question

Quizplus · Accepted Answer

The write-off of an uncollectible account reduces both accounts receivable and the allowance for doubtful accounts, which are both asset accounts, so total assets and equity remain unchanged.

The Entry to Recognize the Write-Off of an Uncollectible Account