The journal entry to write off a customer's account under the direct write-off method is:

Question

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The direct write-off method is used when a specific customer's account is deemed uncollectible. In this method, the bad debt expense is recognized at the time of write-off. Therefore, the correct journal entry would be to debit Bad Debts Expense and credit the Accounts Receivable of the specific customer being written off. Option A is incorrect as it credits the Allowance for Doubtful Accounts, which is used in the allowance method. Option B is not a valid answer as it does not provide a journal entry. Option C is incorrect as it does not reflect the nature of the transaction, which is to write off an uncollectible account. Option E is incorrect as it does not reflect the decrease in Accounts Receivable resulting from the write-off.

The Journal Entry to Write Off a Customer's Account Under