Under the allowance method,when a company collects cash from an account previously written off,total assets increase.

Name: Under the allowance method,when a company collects cash from an account previously written off,total assets increase.
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Question

Quizplus · Accepted Answer

When cash is collected from an account previously written off, it does not affect total assets because the collection is offset by a decrease in the allowance for doubtful accounts, which is a contra-asset account.

Under the Allowance Method,when a Company Collects Cash from an Account