The write off decreases A/R and the allowance so you were right about that. They offset each other in current assets so it doesn't affect the working capital or the income statement.
I'm not sure why he said write offs didn't have an effect on any of those elements. I think that part was wrong. It definitely decreases AR and the Allowance.
It know that Net AR is unaffected, but the individual accounts of AR and Allowance should both decrease. I think that may just be a glitch in wording. Weird!
That's great AleFLCPA! Rest is important! My biggest problem is not resting when I know I need it and when I have the ability to actually get it. I decided to call it quits at 1 last night, finally fell asleep around 2, was woken up by not one, but two little people in the middle of the night. That is a rare occurence with my kids so it took me about 10 minutes to figure out I needed to get up. After an hour of dealing with that I think I finally got back to sleep around 4, but slept restlessly because I dreamed about FAR! Thank goodness they all slept until 9:00 this morning instead of the usual 7:30 or I would be dead on my feet right now. Need more rest!!!
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