In the direct write-off method, writing off an account causes:
A) a decrease in expense and an increase in an asset.
B) an increase in expense and a decrease in an asset.
C) a decrease in the Allowance account and a decrease in expense.
D) an increase in Accounts Receivable and a decrease to revenue.

Question

Quizplus · Accepted Answer

The direct write-off method involves recognizing bad debt expense when a specific account is deemed uncollectible, which increases the expense and decreases the asset (Accounts Receivable).

In the Direct Write-Off Method, Writing Off an Account Causes