Final answer:
The net amount for short-term receivables isn't affected by writing off a specific uncollectible account if the allowance method is used. This method anticipates bad debts and records them in a contra asset account, so the actual write-off doesn't impact the net reported amount.
Step-by-step explanation:
When a company determines that a specific account receivable is uncollectible, it does not necessarily affect the net amount reported for short-term receivables. This is because many companies use the allowance method for accounting for bad debts.
Under the allowance method, the company estimates the amount of receivables that will be uncollectible at the end of each period and records an adjusting entry to establish a contra asset account called the Allowance for Doubtful Accounts.
When an account is deemed uncollectible, the company will write off the receivable by reducing the Accounts Receivable and the Allowance for Doubtful Accounts by the amount of the receivable that is no longer considered collectible.
Since the bad debt was already estimated and recorded against the allowance account, the write-off does not affect the net income or the net accounts receivable reported on the balance sheet at that particular time.