Net income is reduced when a specific receivable is written off under the analysis of receivables method.

Name: Net income is reduced when a specific receivable is written off under the analysis of receivables method.
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Quizplus · Accepted Answer

Under the allowance method (also known as the analysis of receivables method), writing off a specific receivable affects only the balance sheet accounts (Accounts Receivable and Allowance for Doubtful Accounts) and does not impact the income statement or net income.

Net Income Is Reduced When a Specific Receivable Is Written