Under the allowance method, the recovery of bad debts affects both the income statement and the statement of financial position.

Name: Under the allowance method, the recovery of bad debts affects both the income statement and the statement of financial position.
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The recovery of bad debts reduces the allowance for doubtful accounts on the balance sheet and increases the net income on the income statement. This affects both the income statement and the statement of financial position.

Under the Allowance Method, the Recovery of Bad Debts Affects