Chapter 5, Problem 5.12BE

To determine

Direct write-off method:

This method does not make allowance or estimation for future expected uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

To record: The write-off of a customer’s account on March 14.