Under the allowance method, the recovery of an account previously written-off ________.
A) has no effect on the allowance for uncollectible accounts
B) has no effect on total assets
C) increases net income
D) increases net realizable value of receivables

Question

Quizplus · Accepted Answer

When an account previously written off is recovered, it increases both cash and the allowance for uncollectible accounts, leaving total assets unchanged.

Under the Allowance Method, the Recovery of an Account Previously