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

Question

Quizplus · Accepted Answer

Under the direct write-off method, the specific customer account is directly credited to write off as uncollectible. Therefore, the general ledger account credited would be Accounts Receivable.

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