When a company is using the direct write-off method,and an account is written off,the journal entry consists of a:
A) debit to Accounts receivable and a credit to Cash.
B) credit to Accounts receivable and a debit to Uncollectible accounts expense.
C) debit to the Allowance for uncollectible accounts and a credit to Accounts receivable.
D) credit Accounts receivable and a debit to Interest expense.

Question

Quizplus · Accepted Answer

In the direct write-off method, when an account is deemed uncollectible and is written off, it is directly credited to Accounts receivable and debited to Uncollectible accounts expense. This method is not the recommended method as it does not take into account the possibility of bad debts beforehand and does not provide an allowance for uncollectible accounts.

When a Company Is Using the Direct Write-Off Method,and an Account