When a company writes off an account receivable using the direct write-off method, the effect of this write-off on the financial statements is to
A)increase the net realizable value of accounts receivable
B)reduce total expenses
C)reduce total assets
D)increase working capital

Question

Quizplus · Accepted Answer

When a company writes off an account receivable using the direct write-off method, it reduces the total assets (specifically the accounts receivable balance). It does not affect the net realizable value of accounts receivable, total expenses or working capital.

When a Company Writes Off an Account Receivable Using the Direct