Writing off a bad debt: direct write-off method

Transaction

A customer who owes $2,500.00 on account for goods bought earlier this year has gone bankrupt, and the account is uncollectible. Record the write-off.

Assumptions: The company uses the direct write-off method: it has no Allowance for Doubtful Accounts. No sales tax applies.

Accounts

Tap an account, then choose Debit or Credit and type the amount. × removes a line.

Debit

No lines yet. Choose an account above.

Credit

No lines yet. Choose an account above.

Debits $0.00Credits $0.00