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 affect 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

The direct write-off method involves directly reducing the accounts receivable and recognizing the loss as an expense, which decreases net income. Therefore, the entry to write-off a specific account would decrease the accounts receivable and decrease net income.

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