When is it acceptable to use the direct write-off method?
A)If the dollar amount of uncollectible accounts is not material.
B)If most uncollectible accounts do not occur in the period of sale.
C)If most sales are made to other businesses.
D)All of these answer choices are correct.

Question

Quizplus · Accepted Answer

The direct write-off method is permitted by generally accepted accounting principles only if the amount of uncollectible accounts expense is immaterial.

When Is It Acceptable to Use the Direct Write-Off Method