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 acceptable practice.

Question

Quizplus · Accepted Answer

Writing off an uncollectible account under the allowance method affects only balance sheet accounts. It reduces the accounts receivable and the allowance for doubtful accounts without impacting the income statement, as the expense was already recognized when the allowance was initially estimated.

Under the Allowance Method Writing Off an Uncollectible Account