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

Question

Quizplus · Accepted Answer

When an account is written off using the allowance method, the trade accounts receivable decreases because the specific account is removed, and the allowance for doubtful accounts decreases because the estimated uncollectible amount is used to write off the account.

When an Account Is Written Off Using the Allowance Method