Under the direct write-off method of accounting for uncollectible accounts Bad Debt Expense is increased
A)when a credit sale is past due.
B)at the end of each accounting period.
C)whenever a pre-determined amount of credit sales have been made.
D)when an account is determined to be uncollectible.

Question

Quizplus · Accepted Answer

Under the direct write-off method, Bad Debt Expense is only increased when an account is determined to be uncollectible. This means that the company waits until a specific account is deemed uncollectible before recording the expense.

Under the Direct Write-Off Method of Accounting for Uncollectible Accounts