A company uses the direct write- off method to account for uncollectable receivables. Which of the following is included in the entry to write off a bad debt?

Name: A company uses the direct write- off method to account for uncollectable receivables. Which of the following is included in the entry to write off a bad debt?
Brand: Quizplus
Rating: 4.9 (48 reviews)

Question

Quizplus · Accepted Answer

In the direct write-off method, when a specific account is deemed uncollectible, the company debits Bad Debt Expense and credits the customer's Account Receivable directly.

A Company Uses the Direct Write- Off Method to Account