When the direct write-off method is used,the entry to write-off a specific account would
A)decrease expenses and increase net income.
B)have no effect on net income.
C)increase the accounts receivable and increase net income.
D)decrease the accounts receivable and decrease net income.

Question

Quizplus · Accepted Answer

When the direct write-off method is used to write-off a specific account, the accounts receivable account is decreased (credited) and the bad debt expense account is increased (debited). This results in a decrease in net income, as expenses are increasing. Therefore, the correct choice is D.

When the Direct Write-Off Method Is Used,the Entry to Write-Off