Roe's Renovations utilizes the direct write-off method of accounting for uncollectible receivables. On September 15 the company is notified by the attorneys for Jacob Marley that Jacob Marley is bankrupt and no cash is expected in the liquidation. Write off the $675 of accounts receivable due from Jacob Marley.

Sept. 15

a. Accounts Receivable-Jacob Marley

b. Allowance for Doubtful Accounts

c. Bad Debt Expense

d. Cash

e. Sales

f. Accounts Receivable-Jacob Marley

g. Allowance for Doubtful Accounts

h. Bad Debt Expense

i. Cash Over or Short

j. Sales

Under the method of direct write off of the accounting for uncollectible receivables, the journal entry should be recorded in the books is as follows:

On September 15

Bad debt expense A/c.................................... Dr $675

Accounts receivable- Jacob Marley A/c........Cr $675

When the company is notified of the bankruptcy of the Jacob Marley, then the above following entry is to be recorded as the bad debt expense, got increases and any increase is debited. Therefore, the account of bad debt expense is debited. And the balance of the accounts receivable of Jacob Marley has been reduced because the amount is unrecoverable so any decrease is credited. Therefore, the account of accounts receivable of Jacob Marley is credited.