Use the information above to answer the following question.In January 2015,the company writes off a $500 account which it determines is uncollectible.If the company uses the allowance method,which of the following is true?
A)The write-off will decrease the current assets by $500.
B)The write-off will decrease net income for 2015 by $100.
C)The write-off will decrease net accounts receivable by $100.
D)The write-off will not increase the expenses for 2015.

Question

Quizplus · Accepted Answer

The write-off using the allowance method does not affect expenses or net income because the expense was already recognized when the allowance was initially set up.

Use the Information Above to Answer the Following Question