In the direct write-off method. TechCom determines on January 23 that it cannot collect $5000 owed to it by its customer J. Kent. So it should make the following entry:Bad Debt Expense 5000 Accounts Receivable 5000
举一反三
- Using the direct write-off method, the bad debt expense that is recorded as a specific customer's account is determined to be noncollectible.
- Under the direct write-off method, the journal entry to record Uncollectible-Account Expense includes a credit to Accounts Receivable.
- Companies use two methods to account for uncollectible accounts: the direct write-off method and the allowance method. ( )
- Under the allowance method of accounting for uncollectible accounts receivable, no attempt is made to estimate the bad debt expense. ( )
- The direct write-off method of accounting for bad debts records the loss from an uncollectible account receivable when it is determined to be uncollectible.