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Home > Business & Careers > Accounting   »   Direct Write Off Method

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Old Dec 12, 2006, 07:05 AM
smcgee
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Direct Write Off Method
When you're using he direct write off method, do you decrease the AR balance and net income?

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Old Dec 12, 2006, 02:01 PM   #2  
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At the time of Sale:
Dr. Accounts Receivable
Cr. Service Revenue

When you are writing it off:
Dr. Bad Debts Expense
Cr. Accounts Receivable
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Old Dec 13, 2006, 06:00 AM   #3  
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Quote:
Originally Posted by CaptainForest
At the time of Sale:
Dr. Accounts Receivable
Cr. Service Revenue

When you are writing it off:
Dr. Bad Debts Expense
Cr. Accounts Receivable




Thank you!!!
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