Under the direct write-off method,what journal entry is prepared when an account is determined to be worthless or uncollectible?
A)debit Allowance for Uncollectible Accounts and credit Accounts Receivable
B)debit Accounts Receivable and credit Allowance for Uncollectible Accounts
C)debit Uncollectible-Account Expense and credit Allowance for Uncollectible Accounts
D)debit Uncollectible-Account Expense and credit Accounts Receivable

Question

Quizplus · Accepted Answer

Under the direct write-off method, the journal entry prepared when an account is determined to be worthless or uncollectible is to debit the Uncollectible-Account Expense and credit Accounts Receivable. This is because the company directly writes off the specific uncollectible account and does not make any adjustment to the Allowance for Uncollectible Accounts.

Under the Direct Write-Off Method,what Journal Entry Is Prepared When