Under the direct write-off method of accounting for uncollectible accounts (bad debts), when a specific account is written off:

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Solution

(A) The accountant debits bad debt expense

(B) The accountant credits bad debt expense

(C) The accountant debits allowance for bad debt

(D) The accountant credits allowance for bad debt

Answer (A): The accountant debits bad debt expense

Explanation: The accountant debits the bad debts expenses as an expense for the organisation as there is a slim chance that it would be paid off.

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Similar questions

An extract of Trial balance from the books of Tahiliani and Sons Enterprises on Marc 31 2017 is given below:

Name of the Account	Debit Amount Rs	Credit Amount Rs

Sundry debtors	50,000
Bad debts	6,000
Provision for doubtful debts		4,000

Additional Information:

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