Direct Write-Off

Record bad debt expense when a specific account becomes uncollectible.

Allowance — Percentage of Sales

Estimate and record bad debt using a percentage of net credit sales.

Allowance — Aging of AR

Prepare an aging schedule and record the adjusting entry.

T-Account Analysis

Post entries to the Allowance T-account and calculate the ending balance.

Write-off and Recovery

Record a write-off and then a subsequent cash recovery.

Mixed Problems

Identify the method and solve a multi-step bad debt scenario.