Write-off method affects income statement as an additional expense is incurred when an account is written-off.

Name: Write-off method affects income statement as an additional expense is incurred when an account is written-off.
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Quizplus · Accepted Answer

The write-off method (specifically the direct write-off method) does not create an additional expense at the time of the write-off; it merely shifts the expense from accounts receivable to bad debt expense, which should have already been recognized under the allowance method.

Write-Off Method Affects Income Statement as an Additional Expense Is