When a specific customer's account is written off by a company using the allowance method,the effect on net income and the net realizable value of the accounts receivable is Net Realizable Value
Net Income of Accounts Receivable

Question

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Writing off a specific customer's account under the allowance method does not affect net income because the expense was already recognized when the allowance was established. Similarly, the net realizable value of accounts receivable remains unchanged because the write-off merely shifts amounts within the accounts receivable and allowance accounts, without affecting the total net realizable value.

When a Specific Customer's Account Is Written Off by a Company