Under the direct write-off method,the entry to write off a customer's account would include a debit to:
A)Bad Debt Expense and a credit to Allowance for Doubtful Accounts.
B)Bad Debt Expense and a credit to Accounts Receivable.
C)Write-off Expense and a credit to Accounts Receivable.
D)Sales and a credit to Accounts Receivable.

Question

Quizplus · Accepted Answer

When the direct write-off method is used,the entry to record a write-off includes a debit to Bad Debt Expense,which increases expenses and decreases net income,and a credit to Accounts Receivable,which decreases Accounts Receivable.

Under the Direct Write-Off Method,the Entry to Write Off a Customer's