In the direct write-off method,writing off an account causes:
A)a decrease in expense.
B)an increase in expense.
C)a decrease in the Allowance account.
D)an increase in Accounts Receivable.

Question

Quizplus · Accepted Answer

Writing off an account in the direct write-off method means recognizing it as bad debt and increasing the expense account. The Allowance account and Accounts Receivable account are not affected by the direct write-off method, as it does not involve estimating or adjusting the allowance for doubtful accounts.

In the Direct Write-Off Method,writing Off an Account Causes