Hermine Company wrote off an $700 uncollectible account receivable against the allowance for doubtful accounts with a balance of $2,000.The current ratio after the write-off of the uncollectible account

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The current ratio, which compares current assets to current liabilities, remains unchanged by the write-off of an uncollectible account when using the allowance method. This is because the write-off reduces both accounts receivable and the allowance for doubtful accounts by equal amounts, leaving total current assets unchanged.

Hermine Company Wrote Off an $700 Uncollectible Account Receivable Against