When the account Allowance for Doubtful Accounts is used,writing off of an uncollectible accounts receivable will:
A)Reduce income.
B)Reduce an expense.
C)Not change income or total assets.
D)Increase total assets.

Question

Quizplus · Accepted Answer

Writing off an uncollectible accounts receivable using the Allowance for Doubtful Accounts method does not change income or total assets because the expense was already recognized when the allowance was initially estimated. This action merely adjusts the accounts receivable and allowance accounts, with no impact on the income statement or the total assets.

When the Account Allowance for Doubtful Accounts Is Used,writing Off