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When a firm provides for credit losses under the allowancemethod, why is the allowance...

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Accounting

When a firm provides for credit losses under the allowancemethod, why is the allowance for doubtful accounts credited ratherthan accounts receivable?

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Under Allowance method when a firm provides for Credit losses the Allowance for doubtful accounts is credited rather than accounts receivables because it is not like direct write off method Allowance for Doubtful    See Answer
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In: AccountingWhen a firm provides for credit losses under the allowancemethod, why is the allowance for...When a firm provides for credit losses under the allowancemethod, why is the allowance for doubtful accounts credited ratherthan accounts receivable?

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