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    smcgee's Avatar
    smcgee Posts: 2, Reputation: 1
    New Member
     
    #1

    Dec 12, 2006, 09:05 AM
    Direct Write Off Method
    When you're using he direct write off method, do you decrease the AR balance and net income?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
     
    #2

    Dec 12, 2006, 04:01 PM
    At the time of Sale:
    Dr. Accounts Receivable
    Cr. Service Revenue

    When you are writing it off:
    Dr. Bad Debts Expense
    Cr. Accounts Receivable
    smcgee's Avatar
    smcgee Posts: 2, Reputation: 1
    New Member
     
    #3

    Dec 13, 2006, 08:00 AM
    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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