Under the allowance method,the charge off of a specific account receivable does not influence the income statement nor the net receivable on the balance sheet at the time of the charge off.

Question

Quizplus · Accepted Answer

Under the allowance method, the charge off of a specific account receivable is already accounted for with the bad debt expense recorded previously. Thus, it does not affect the income statement or the net receivable on the balance sheet at the time of the charge off.

Under the Allowance Method,the Charge Off of a Specific Account