Answer:
C. does not affect net income in the period it is collected
Explanation:
The whole point of the allowance method is to do not impact the net income when performing a write-off
When a write-off occurs the following entry is made:
allowance for doubful accounts debit
account receivable credit
If the account is reversed:
account receivable debit
allowance for doubful account credit
cash debit
account receivable credit
There is no revenue or expense account used in the procedure. Therefore, it does not affect net income.
