Under the allowance method,when a company writes off an account receivable as an actual bad debt,it records an expense.

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Writing off an account receivable as a bad debt is an acknowledgement that the amount is unlikely to be collected, which means it no longer represents a valid asset of the company. As a result, the company must record an expense to reflect the loss incurred. This expense reduces the company's net income and is reflected in its income statement.

Under the Allowance Method,when a Company Writes Off an Account