[marquice]

What happens to the total current assets when an uncollectible account receivable written off against the allowance for bad debt does the
Total current assets decrease and expenses decrease
Or does the total current assets decrease and expenses increase

[CaptainForest]

Sample B/S of CA
Cash 100
AR 60
Less AFDA 10
Net AR 50

Total CA = 150


Write off 5 from AFDA
Dr. AFDA 5
Cr. AR 5

Sample B/S of CA
Cash 100
AR 55
Less AFDA 5
Net AR 50

Total CA = 150

Therefore, no change in CA.

Also, it is NOT an expense since you have already recorded the bad debt expense in a pervious period.