1. Which of the following statements associated with the allowance method for ba
ID: 2449380 • Letter: 1
Question
1. Which of the following statements associated with the allowance method for bad debts is false?
a. The write-off of an uncollectible account does not affect the accounts receivable subsidiary ledger.
b. The write-off of an uncollectible account does not affect the total amount of current assets.
c. The write-off of an uncollectible account does not affect current liabilities.
d. The write-off of an uncollectible account does not affect the income statement.
e. The write-off of an uncollectible account does not affect stockholders' equity.
a. The write-off of an uncollectible account does not affect the accounts receivable subsidiary ledger.
b. The write-off of an uncollectible account does not affect the total amount of current assets.
c. The write-off of an uncollectible account does not affect current liabilities.
d. The write-off of an uncollectible account does not affect the income statement.
e. The write-off of an uncollectible account does not affect stockholders' equity.
Explanation / Answer
The correct answer is
a. The write-off of an uncollectible account does not affect the accounts receivable subsidiary ledger
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.