Choice "A" is correct, when the allowance method of recognizing uncollectible accounts is used, the entry to record the write-off of a specific account decreases both accounts receivable and the allowance for uncollectible accounts.
| Debit (Dr) | Credit (Cr) |
|---|
| Allowance for uncollectible accounts | $ XX | |
| Accounts receivable | | $ XX |
Choice "c" is incorrect. The allowance for uncollectable accounts decreases.Choice "d" is incorrect. The allowance for uncollectible accounts decreases, but net income is not affected.
Choice "b" is incorrect. Net income is not affected.
