1#Quantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance of an account owed by a customer, Alliance Inc.
On March 1, journalize the entry to record the write-off, assuming that (a) the direct write-off methodThe method of accounting for uncollectible accounts that recognizes the expense only when accounts are judged to be worthless.
is used and (b) the allowance methodThe method of accounting for uncollectible accounts that provides an expense for uncollectible receivables in advance of their write-off.
is used. Refer to the Chart of Accounts for exact wording of account titles.