Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration


Horngren'S Financial And Managerial Accounting
Found in: Page 465

Short Answer

When is bad debts expense recorded when using the direct write-off method?


Under the direct write-off method, bad debt expenses are recorded in respect of receivable when it is expected that it will never get collected.

See the step by step solution

Step by Step Solution

Step 1: Definition of Accounts Receivables

Accounts receivables refer to the amount for which sales are made, but payment is still pending from the customer.

Step 2: Recording the bad debts expenses using the direct write-off method

When the business entity uses the direct write-off method, it will record the bad debts expenses when they expect that the amount due from the customer’s end will never get collected.

Most popular questions for Business-studies Textbooks


Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.