When an account is written off using the allowance method, the

Question

Quizplus · Accepted Answer

When an account is written off using the allowance method, the cash realizable value of accounts receivable remains the same because the allowance for doubtful accounts has already accounted for the potential loss from uncollectible accounts. The write-off reduces both the accounts receivable and the allowance for doubtful accounts by the same amount, leaving the net cash realizable value unchanged.

When an Account Is Written Off Using the Allowance Method