If the direct write-off method is used, the debit account to write off an uncollectible is:
A) Accounts Receivable.
B) Bad Debt Expense.
C) Allowance for Doubtful Accounts.
D) Sales.

Question

Quizplus · Accepted Answer

The direct write-off method involves debiting Bad Debt Expense and crediting Accounts Receivable when an account is deemed uncollectible. This method directly impacts the income statement by recognizing the expense associated with the uncollectible account.

If the Direct Write-Off Method Is Used, the Debit Account