Accounting receivables and long term assets

Pell Company sells almost exclusively for cash, but it does make a few small charge sales, and it also occasionally has a small bad debt loss which it accounts for by the direct write-off method. 1. Give below the entry made by Pell Company on February 5 to write off the $55 uncollectible account of Joan Bond (the goods were sold during the previous period.) 2. Writing off the foregoing bad debt directly to the Bad Debts Expense account violates the accounting principle of However, due to the accounting constraint of the direct write-off is permissible in this case because the company's bad debt losses are very small in relation to its sales. Your