Income statement effects of uncollectibles occur at the point of estimation, not when an account is written-off.

Name: Income statement effects of uncollectibles occur at the point of estimation, not when an account is written-off.
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Under the matching principle, costs relating to anticipated bad debts expense are matched with sales in the period that the sales are recognized. Upon write-off, both the receivable and the allowance account are reduced, leaving net receivables unchanged.

Income Statement Effects of Uncollectibles Occur at the Point of Estimation