Elsea Corporation wrote off an $800 uncollectible account receivable against the $24,000 balance in its allowance account.

Question:

Elsea wrote off an $800 uncollectible account receivable against the $24,000 balance in its allowance account.

Required
Explain the effect of the write-off on Elsea’s current ratio.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...