Under the allowance method, when a specific account is written off
A)total assets will be unchanged.
B)net income will decrease.
C)total assets will decrease.
D)total assets will increase.

Question

Quizplus · Accepted Answer

When a specific account is written off under the allowance method, the allowance for doubtful accounts is decreased, and accounts receivable is decreased by the same amount, leaving total assets unchanged.

Under the Allowance Method, When a Specific Account Is Written