Which of the following statements is false?
A)The journal entry to record bad debt expense decreases current assets.
B)The journal entry to record bad debt expense decreases retained earnings.
C)The journal entry to write off an uncollectible account receivable decreases operating income.
D)The journal entry to write off an uncollectible account receivable does not affect current assets.

Question

Quizplus · Accepted Answer

The journal entry to write off an uncollectible account receivable affects the allowance for doubtful accounts and the accounts receivable, but it does not directly impact operating income. Operating income is affected when bad debt expense is recognized, not when the specific write-off occurs.

Which of the Following Statements Is False