Charlton Sales has a receivable for $92 that they now deem to be uncollectable.Charlton uses the direct write-off method.Which of the following entries correctly records the write-off?
A) $$\begin{array} { | l | r | r | }
\hline \text { Accounts receivable } & 92 & \
\hline \text { Bad debts expense } & & 92 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 92 & \
\hline \text { Accounts receivable } & & 92 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | }
\hline \text { Bad debts expense } & 92 & \
\hline \text { Accounts receivable } & & 92 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | }
\hline \text { Allowance for doubtful debts } & 92 & \
\hline \text { Accounts receivable } & & 92 \
\hline
\end{array}$$

Question

Charlton Sales has a receivable for $92 that they now deem to be uncollectable.Charlton uses the direct write-off method.Which of the following entries correctly records the write-off?
A) $$\begin{array} { | l | r | r | } 
\hline \text { Accounts receivable } & 92 & \
\hline \text { Bad debts expense } & & 92 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 92 & \
\hline \text { Accounts receivable } & & 92 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | } 
\hline \text { Bad debts expense } & 92 & \
\hline \text { Accounts receivable } & & 92 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | } 
\hline \text { Allowance for doubtful debts } & 92 & \
\hline \text { Accounts receivable } & & 92 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The direct write-off method records bad debts by directly debiting Bad Debts Expense and crediting Accounts Receivable when an account is deemed uncollectible.

Charlton Sales Has a Receivable for $92 That They Now Accounts receivable 92 Bad debts expense 92\begin{array} { | l | r | r | } \hline \text { Accounts receivable } & 92 & \\\hline \text { Bad debts expense } & & 92 \\\hline\end{array} Accounts receivable Bad debts expense ​92​92​​

Charlton Sales Has a Receivable for $92 That They Now $\begin{array} { | l | r | r | } \hline \text { Accounts receivable } & 92 & \\\hline \text { Bad debts expense } & & 92 \\\hline\end{array}$