What would be the basis for the following entry on a firm's records? $\begin{array} { | c | l | }
\hline \text { Bad Debt Expense } & 150 \
\hline \text { Accounts Receivable } & 150 \
\hline
\end{array}$

Question

What would be the basis for the following entry on a firm's records? $\begin{array} { | c | l | } 
\hline \text { Bad Debt Expense } & 150 \
\hline \text { Accounts Receivable } & 150 \
\hline
\end{array}$

Quizplus · Accepted Answer

This entry reflects the direct write-off method, where a specific account receivable is deemed uncollectible and directly written off, indicating the firm is not using the allowance method.

What Would Be the Basis for the Following Entry on a Firm's