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 increase total assets because the collection only affects the accounts receivable and allowance for doubtful accounts, both of which are asset accounts, thus keeping total assets unchanged.

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