Joe is a customer of Hopts,Inc.His current balance due is $1,560.It has been determined that he defaulted on his account.If the company uses the direct write-off method,what entry is necessary to write off the $1,560?

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The direct write-off method is used when the company determines that a customer's account is uncollectible and writes off the uncollectible amount as a bad debt expense. In this case, Joe's account has defaulted, and the $1,560 owed by him is deemed uncollectible. Therefore, the entry required under the direct write-off method is to debit Bad Debt Expense and credit Accounts Receivable/Joe. This will reduce the balance of Accounts Receivable by $1,560 and recognize an expense in the amount of $1,560.

Joe Is a Customer of Hopts,Inc