Question

under the direct write-off method uncollectible accounts, bad debt expense is debited? at the end of each accounting period, when a credit sale is past due, whenever a predetermined amount of credut sales have been made, when an account is dertemined to be worthless

Answer 1

Bad debt expense under the direct write-off method is recorded when an account receivable is specifically identified as uncollectible, not based on a predetermined amount of credit sales or at the end of an accounting period.

Step-by-step explanation:

Under the direct write-off method of accounting for uncollectible accounts, bad debt expense is recorded when an account is determined to be worthless. This means that when it becomes clear that a receivable will not be collected, the bad debt expense should be debited and accounts receivable credited to reflect the loss in the company's financial statements. This method does not estimate future bad debts and only recognizes bad debts once they are specifically identified as uncollectible