When accounting for uncollectible accounts,

Question

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Writing off a specific receivable under the percentage of ending accounts receivable method does not directly affect the current ratio because it involves adjusting the allowance for doubtful accounts rather than immediately impacting the amount of current assets or current liabilities. This method adjusts the allowance based on the estimated uncollectible portion of the ending accounts receivable balance, not through direct reductions of accounts receivable or cash when a specific account is written off.

When Accounting for Uncollectible Accounts