Questions: Under the allowance method, recording the write-off of an uncollectible account will have what effect on the accounting equation? Total assets decrease and equity decreases. Total assets remain unchanged. Total assets increase and equity decreases. Liabilities increase and equity decreases.

The answer is the second one: Total assets remain unchanged.

Explanation for each option:

1. Total assets decrease and equity decreases: This is incorrect. When an uncollectible account is written off under the allowance method, the write-off is recorded by debiting the Allowance for Doubtful Accounts and crediting Accounts Receivable. Both accounts are asset accounts, so the total assets remain unchanged.

2. Total assets remain unchanged: This is correct. The write-off of an uncollectible account under the allowance method involves reducing both the Accounts Receivable and the Allowance for Doubtful Accounts by the same amount. Since both are asset accounts, the net effect on total assets is zero.

3. Total assets increase and equity decreases: This is incorrect. There is no increase in total assets, and equity is not affected by the write-off of an uncollectible account under the allowance method.

4. Liabilities increase and equity decreases: This is incorrect. The write-off of an uncollectible account does not affect liabilities or equity. It only affects asset accounts.

In summary, under the allowance method, the write-off of an uncollectible account does not change the total assets or equity.