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

Question

Quizplus · Accepted Answer

When using the direct write-off method, the Bad Debts Expense account is debited to write off a customer's account as uncollectible. This is because the direct write-off method does not anticipate uncollectible accounts and so does not provide an allowance for doubtful accounts. As a result, the expense is recognized only when a specific account is deemed uncollectible and written off.

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