When an account is written off using the allowance method accounts receivable
A) is unchanged and the allowance account increases.
B) increases and the allowance account increases.
C) decreases and the allowance account decreases.
D) decreases and the allowance account increases.

Question

Quizplus · Accepted Answer

When an account is written off using the allowance method, the accounts receivable balance is unchanged because the specific receivable being written off is removed from accounts receivable and the allowance for doubtful accounts simultaneously, resulting in a decrease in both accounts receivable and the allowance account.

When an Account Is Written Off Using the Allowance Method