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Which of the Following Statements Associated with the Allowance Method

Question 50

Multiple Choice

Which of the following statements associated with the allowance method for bad debts is false?


A) The write-off of an uncollectible account does not affect the accounts receivable subsidiary ledger.
B) The write-off of an uncollectible account does not affect the total amount of current assets.
C) The write-off of an uncollectible account does not affect current liabilities.
D) The write-off of an uncollectible account does not affect the income statement.
E) The write-off of an uncollectible account does not affect stockholders' equity.

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