Question

Under the allowance method, writing off an uncollectible account Group of answer choices affects both balance sheet and income statement accounts. is not acceptable practice. affects only balance sheet accounts. affects only income statement accounts.

Answer 1

Answer:

Under the allowance method writing of uncollectible account will only affect Balance sheet accounts

Explanation:

Uncollectibles when write of under allowance method will create reduce account receivable one side and also results in reduction of allowance for receivable on other side created previously, thus having impact only on balance sheet:

Entry will be:

Dr: Allowance for Doubtful Debts (Balance Sheet Item)  

Cr: Account Receivable (Balance Sheet Item)