Which of the Following Statements Is True About the Allowance

Multiple Choice

Which of the following statements is true about the allowance method for uncollectible accounts?

A) The net realizable value of trade 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 trade accounts receivable on the balance sheet is the same before and after an account is written off.
D) Allowance for Doubtful Accounts is closed each year to Income Summary.