Question

are these direct write off or allowance method and are they recovery or recording a write off?

1) assume a business records a journal entry that debits bad debt expense and credits accounts receivable?

2) assume a business records a journal entry that debits bad debt expense and credits allowance for doubtful accounts.

3) assume a business records a journal entry that debits accounts receivable and credits bad debt expense.

4) assume a business records a journal entry that debits accounts receivable and credits allowance for doubtful accounts.

5) assume a business records a journal entry that debits allowance for doubtful accounts and credits accounts receivable.

6) assume a business records a journal entry that debits allowance for doubtful accts and credits bad debt expense

7) assume a business records a journal entry that debits accounts receivable and credits notes receivable.

^ is this a note honored or dishonored at maturity?

Answer 1

1) assume a business records a journal entry that debits bad debt expense and credits accounts receivable?
Direct Write off method, since accounts receivable is credited directly
This is recording a write off, since bad debt is debited

2) assume a business records a journal entry that debits bad debt expense and credits allowance for doubtful accounts.
Allowance method, since allowance for doubtful accounts is credited
This is recording a write off, since bad debt is debited

3) assume a business records a journal entry that debits accounts receivable and credits bad debt expense.
Direct Write off method, since accounts receivable is debited directly
This is recording a recovery since bad debt is credited

4) assume a business records a journal entry that debits accounts receivable and credits allowance for doubtful accounts.
Allowance method, since allowance for doubtful accounts is credited
This is recording a recovery since accounts receivable is debited

5) assume a business records a journal entry that debits allowance for doubtful accounts and credits accounts receivable
Allowance method, since allowance for doubtful accounts is debited
This is recording a write off, since accounts receivable is credited

6) assume a business records a journal entry that debits allowance for doubtful accts and credits bad debt expense
Allowance method, since allowance for doubtful accounts is debited
This is recording a recovery since allowance for doubtful accounts is debited

7) assume a business records a journal entry that debits accounts receivable and credits notes receivable.
This is note dishnonored at maturity since accounts receivable is debited