A company that uses the allowance write-off method of accounting for uncollectible accounts does not prepare a year-end adjusting entry to estimate its uncollectibles.

Question

Quizplus · Accepted Answer

The allowance write-off method requires a year-end adjusting entry to estimate uncollectible accounts, ensuring that the accounts receivable are reported at their net realizable value.

A Company That Uses the Allowance Write-Off Method of Accounting