On January 1,Davidson Services has the following balances: Accounts Receivable $23,000
Bad Debts Expense $0
Davidson has the following transactions during January: Credit sales of $120,000,collections of credit sales of $84,000,and write-offs of $18,000.Davidson uses the direct write-off method.The amount of Bad Debts Expense for January is ________.

Question

Quizplus · Accepted Answer

Under the direct write-off method, bad debts expense is recorded when specific accounts are deemed uncollectible. In this case, $18,000 of accounts were written off, so the bad debts expense for January is $18,000.

On January 1,Davidson Services Has the Following Balances: Accounts Receivable