Under the direct write-off method, an attempt is made to match Bad Debt Expense to sales revenues in the same accounting period.

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The direct write-off method does not attempt to match Bad Debt Expense to sales revenues in the same accounting period. Instead, it simply writes off the uncollectible accounts when they are determined to be uncollectible. This method is not considered a GAAP-approved method and is only used by small businesses with no significant accounts receivable balances.

Under the Direct Write-Off Method, an Attempt Is Made to Match