The direct write-off method of accounting for bad debts expense is not allowed under GAAP (generally accepted accounting principles).

Name: The direct write-off method of accounting for bad debts expense is not allowed under GAAP (generally accepted accounting principles).
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The direct write-off method of accounting for bad debts expense is not allowed under GAAP. Instead, the allowance method is required to estimate and match bad debt expense with the related sales revenue.

The Direct Write-Off Method of Accounting for Bad Debts Expense