Fleur de Lis Florist uses the allowance method to account for uncollectible accounts. Unable to collect a $200 account from a customer, Fleur de Lis determined it was uncollectible. How would the write-off of this account affect the company's financial statement?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Fleur de Lis Florist uses the allowance method to account for uncollectible accounts. Unable to collect a $200 account from a customer, Fleur de Lis determined it was uncollectible. How would the write-off of this account affect the company's financial statement? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

The write-off decreases assets (accounts receivable) and increases assets (decrease to allowance for doubtful accounts), resulting in no net change to assets.

Fleur De Lis Florist Uses the Allowance Method to Account