When using the allowance method,the write-off of a receivable ________.

Question

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The write-off of a receivable reduces the amount of the Allowance for Bad Debts account as it involves removing the estimated uncollectible amount from the account. This does not directly affect net income, as the bad debt expense was recognized and recorded previously when the allowance was initially estimated. The write-off also decreases the accounts receivable balance and the net realizable value of the asset. There is no contra-revenue account involved in the write-off.

When Using the Allowance Method,the Write-Off of a Receivable ________