Accounting Using the Direct Write Off Method

In this video, you will learn what the direct write-off method of accounting is, how it works, and when it is used. The direct write-off method is a simple way of recording bad debts, which are accounts receivable that a company cannot collect from its customers. With this method, the company writes off the bad debt as an expense in the income statement when it determined that the customer will not pay.

By watching this video, you will understand how to journalize the transactions related to bad debts using this method.

Jonathan M. Wild

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