When the direct write-off method is used to account for uncollectible accounts,which of the following accounts would not be used?
A)Bad Debt Expense
B)Accounts Receivable
C)Allowance for Doubtful Accounts
D)Notes Receivable

Question

Quizplus · Accepted Answer

When the direct write-off method is used,the company records Bad Debt Expense only when a company writes off specific accounts.As a result,since an estimate of uncollectible accounts is not recorded,a company using the direct write-off method would not have the account,Allowance for Doubtful Accounts.

When the Direct Write-Off Method Is Used to Account for Uncollectible