If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible?
A) Uncollectible Accounts Receivable
B) Accounts Receivable
C) Allowance for Doubtful Accounts
D) Bad Debt Expense

Question

Quizplus · Accepted Answer

The direct write-off method involves debiting the Bad Debt Expense account and crediting the Accounts Receivable account to write off a customer's account as uncollectible. Option A (Uncollectible Accounts Receivable) and option C (Allowance for Doubtful Accounts) are not correct as they are used in the allowance method of accounting for uncollectible receivables. Option B (Accounts Receivable) is not correct as it is not an expense account and the direct write-off method requires debiting an expense account such as Bad Debt Expense.

If the Direct Write-Off Method of Accounting for Uncollectible Receivables