When Using the Allowance Method for Accounting for Bad Debts,accounts

question 61

Multiple Choice

When using the allowance method for accounting for bad debts,accounts receivable is reported on the balance sheet at the expected net realizable value.When a particular receivable from a customer ultimately is determined to be uncollectible and is written off,the recording of this event will:

• A)Decrease the net realizable value of the accounts receivable.
• B)Have an effect that is not determinable from the information given.
• C)Increase the net realizable value of the accounts receivable.
• D)Have no effect on the net realizable value of the accounts receivable.