A Company Uses the Direct Write-Off Method

A company uses the direct write-off method.The company writes off a $3,000 customer account balance when it becomes clear that the particular customer will never pay.What is the journal entry that would be prepared to record this write-off?

A) Debit Bad Debt Expense and credit Accounts Receivable for $3,000.
B) Debit Allowance for Doubtful Accounts and credit Bad Debt Expense for $3,000.
C) Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $3,000.
D) Debit Accounts Receivable and credit Bad Debt Expense for $3,000.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free