Under the Allowance Method Writing Off An Uncollectible Account Affects What
Under the Allowance Method , Writing off an Uncollectible Accounts or Accounts Receivables that is estimated based on the Percentage of Sales Method (Income Statement-Method) or Percentage of Receivables Method (Balance Sheet-Method) affects Balance Sheet as it is a Contra Asset Account which is deducted from Accounts Receivable / Debtors on Balance Sheet in order to find the Net Realizable Value that is equal to Accou nts Receivable - Allowance for doubtful Accounts / Provision for Doubtful Debts or Allowance For Bad Debts. This results in updating the amount of Accounts Receivable by matching unpaid sales invoice with Uncollectibe Accounts Expense / Doubtful Debts in order to give true information about actual sales made during the accounting to the Users of Financial Statements . Under the Allowance Method of Accounting for Uncollectible Accounts, What is the Cash Realizable Value Or N et Realizable Value Under the Allowance ...