For a company that uses the allowance method,the write-off of an uncollectible account receivable is an asset use transaction.

Name: For a company that uses the allowance method,the write-off of an uncollectible account receivable is an asset use transaction.
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Question

Quizplus · Accepted Answer

The write-off is an asset exchange transaction that decreases assets (accounts receivable)and increases assets (because it decreases the allowance for doubtful accounts,a contra asset account).

For a Company That Uses the Allowance Method,the Write-Off of an Uncollectible