Under the allowance method for uncollectible accounts

(a) the net realizable value of accounts receivable is greater before an account is written off than after it is written off.

(b) Bad Debts Expense is debited when a specific account is written off as uncollectible.

(c) the net realizable value of accounts receivable in the statement of financial position is the same before and after an account is written off.

(d) Allowance for Doubtful Accounts is closed each year to Income Summary.

Solutions

Expert Solution

(c) the net realizable value of accounts receivable in the statement of financial position is the same before and after an account is written off.

Explanation - Reduction in Accounts receivable account is off set by reduction in Allowance for doubtful accounts and hence net realizable value remains same.

(c) the net realizable value of accounts receivable in the statement of financial position is the same before and after an account is written off.

Nikita Chaplot answered 2 years ago

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