Question

On August 1, Hanes Co. determines that it cannot collect $150 from a customer. Hanes uses the direct write-off method. Hanes will record the write-off of this account by debiting:

Answer 1

Using the direct write-off method, Hanes will record the write-off of this account by debiting the Bad Debts Expense account.

What is the direct write-off method?

The direct write-off method is one of the methods for writing off uncollectible accounts.

With the direct write-off method, the bad debts expense account is debited while the accounts receivable are credited.

Thus, using the direct write-off method, Hanes will record the write-off of this account by debiting the Bad Debts Expense account.

Learn more about the direct write-off method at https://brainly.com/question/25078131

#SPJ1