Under the direct write-off method,the entry to write off an uncollectible account will include ________.
A) a debit to Bad Debts Expense account
B) a debit to the customer's Account Receivable
C) a credit to the Allowance for Bad Debts
D) No entry is made to write off uncollectible accounts.

Question

Quizplus · Accepted Answer

Under the direct write-off method, the expense is recognized when the specific account is determined to be uncollectible. The entry to write off an uncollectible account will include a debit to Bad Debts Expense account and a credit to the customer's Account Receivable.

Under the Direct Write-Off Method,the Entry to Write Off an Uncollectible