Under the direct write-off method, no journal entries are ma…
Under the direct write-off method, no journal entries are made until a bad debt is discovered (proves to be uncollectible). The journal entry used by the direct write-off method to record $2,000 of Bad Debt Expense when a customer account is determined to be uncollectible is: Choice Account Debit Credit A Allowance for Doubtful Accounts 2,000 Accounts Recevable 2,000 B Bad Debt Expense 2,000 Allowance for Doubtful Accounts 2,000 C Accounts Receivable 2,000 Allowance for Doubtful Accounts 2,000 D Bad Debt Expense 2,000 Accounts Receivable 2,000