When an uncollectible account receivable is written off against the Allowance for Bad Debts account:
A)total current assets decrease and expenses increase.
B)total current assets are not affected.
C)total current assets decrease and expenses decrease.
D)current assets decrease and expenses are not affected.

Question

Quizplus · Accepted Answer

Writing off an uncollectible account reduces both accounts receivable and the allowance for bad debts by the same amount, leaving total current assets unchanged.

When an Uncollectible Account Receivable Is Written Off Against the Allowance