Question

Under the direct​ write-off method, the entry to write off an uncollectible account will include​ ________. A. a credit to the Allowance for Bad Debts B. a debit to the​ customer's Account Receivable C. a debit to Bad Debts Expense account D. No entry is made to write off uncollectible accounts.

Answer 1

Answer:

C. a debit to Bad Debts Expense account

Explanation:

using the direct​ write-off method, we do not use the allowance. At write-off we recognize the directly the bad debt expense and decrease the accounts receivable.

Is important to notice that the direct method violates the accounting matching principles as, it recognize an expense based on events which occured at prior periods