A Company Uses the Allowance Method to Account for Uncollectible

question 17

Multiple Choice

A company uses the allowance method to account for uncollectible accounts receivables. When the firm writes off a specific customer's account receivable

• A) total current assets are reduced
• B) total expenses for the period are increased
• C) net realizable value of accounts receivable increases
• D) there is no effect on total current assets or total expenses