DEF wrote off a $300 uncollectible account receivable against the $3,600 balance in its allowance account.Compare the current ratio before the write-off with the current ratio after the write-off.

Question

Quizplus · Accepted Answer

Writing off an uncollectible account affects both accounts receivable and the allowance for doubtful accounts, which are both current assets, so the total current assets and the current ratio remain unchanged.

DEF Wrote Off a $300 Uncollectible Account Receivable Against the $3,600