Which of the following entries would be used to account for uncollectible receivables using the direct write-off method?
A) Uncollectible accounts expense is debited and Accounts receivable is credited.
B) Allowance for uncollectible accounts is debited and Uncollectible accounts expense is credited.
C) Accounts receivable is debited and Uncollectible accounts expense is credited.
D) Uncollectible accounts expense is debited and Allowance for uncollectible accounts is credited.

Question

Quizplus · Accepted Answer

The direct write-off method involves directly writing off a bad debt when it becomes clear that the customer will not pay. This is done by debiting Uncollectible Accounts Expense and crediting Accounts Receivable, reflecting the expense incurred from the uncollectible receivable and reducing the accounts receivable balance accordingly.

Which of the Following Entries Would Be Used to Account