Question

Entries for Bad Debt Expense under the Direct Write-Off and Allowance Method

Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31:

Customer		Amount
Shawn Brooke		$12,600
Eve Denton		11,700
Art Malloy		16,000
Cassie Yost		3,000
	Total	43,300

Answer 1

Using direct write off method
Particulars	Debit	Credit
Bad Debt Expense	43,300
Accounts Receivable - Shawn Brooke		12,600
Accounts Receivable - Eve Denton		11,700
Accounts Receivable - Art Malloy		16,000
Accounts Receivable - Cassie Yost		3,000
Allowance method
Particulars	Debit	Credit
Allowance for doubtful accounts	43,300
Accounts Receivable - Eve Denton		12,600
Accounts Receivable - Art Malloy		11,700
Accounts Receivable - Cassie Yost		16,000
Accounts Receivable - Cassie Yost		3,000