Allowance for Doubtful Accounts is debited under the direct write-off method when an account is determined to be uncollectible.

Name: Allowance for Doubtful Accounts is debited under the direct write-off method when an account is determined to be uncollectible.
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Question

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Under the direct write-off method, the uncollectible account is directly written off as an expense and the allowance for doubtful accounts is not debited. The allowance for doubtful accounts is only debited under the allowance method.

Allowance for Doubtful Accounts Is Debited Under the Direct Write-Off