Under the allowance method of accounting for uncollectible accounts,

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The allowance method involves estimating uncollectible accounts at the end of each period, which affects the Allowance for Doubtful Accounts and Bad Debt Expense. When an account is actually written off, it does not affect the cash realizable value of accounts receivable because this value already accounted for estimated uncollectibles. The specific write-off reduces both Accounts Receivable and the Allowance for Doubtful Accounts by the same amount, leaving the net realizable value unchanged.

Under the Allowance Method of Accounting for Uncollectible Accounts