Under the allowance method, writing off an uncollectible account
A)affects only balance sheet accounts.
B)affects both balance sheet and income statement accounts.
C)affects only income statement accounts.
D)is not an acceptable practice.

Question

Quizplus · Accepted Answer

Under the allowance method, writing off an uncollectible account reduces both the Accounts Receivable and the Allowance for Doubtful Accounts, both of which are balance sheet accounts.

Under the Allowance Method, Writing Off an Uncollectible Account