Explore BrainMass

Explore BrainMass

    Entry to write off uncollectible accounts, allowance method

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Under the allowance method of recognizing uncollectible accounts, the entry to write off an uncollectible account:

    A) increases the allowance for uncollectible accounts.
    B) has no effect on the allowance for uncollectible accounts
    C) has no effect on net income
    D) decreases net income

    please explain the answer.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:24 pm ad1c9bdddf
    https://brainmass.com/business/allowance-method/entry-write-uncollectible-accounts-allowance-method-278145

    Solution Preview

    First, the entry to write off a customer account is:

    Debit allowance for uncollectible accounts
    Credit accounts receivable

    The ...

    Solution Summary

    In 85 words, each part of the multiple choice question is explained and the answer is given.

    $2.19

    ADVERTISEMENT