A company uses the direct write-off method. The company writes off a $3,000 customer account balance when it becomes clear that the particular customer will never pay. What is the journal entry that would be prepared to record this write-off?
A. Debit Bad Debt Expense and credit Accounts Receivable for $3,000.
B. Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $3,000.
C. Debit Allowance for Doubtful Accounts and credit Bad Debt Expense for $3,000.
D. Debit Accounts Receivable and credit Bad Debt Expense for $3,000.
Answer: A
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