Question

Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is debited

whenever a pre-determined amount of credit sales have been made.

when an account is determined to be uncollectible.

at the end of each accounting period.

when a credit sale is past due.

Answer 1

Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is debited whenever a pre-determined amount of credit sales have been made. when an account is determined to be uncollectible. at the end of each accounting period. when a credit sale is past due.

The direct write-off method of accounting for uncollectible accounts is a method for recognizing bad debts expense arising from credit sales. Under this method there is no allowance account. Rather, an account receivable is written-off directly to expense only after the account is determined to be uncollectible.

So answer is Option B.

when an account is determined to be uncollectible.