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 Bad Debts Expense
C) debit to the Allowance for Bad Debts and a credit to Accounts Receivable
D) credit to Accounts Receivable and a debit to Interest Expense

Question

Quizplus · Accepted Answer

When using the direct write-off method, the journal entry for a write-off involves debiting the Bad Debts Expense account and crediting the Accounts Receivable account. Therefore, the correct choice is B. Options A and D are incorrect as they do not reflect the proper accounting treatment for a write-off. Option C is also incorrect as it relates to the allowance method, not the direct write-off method.

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