Generally Accepted Accounting Principles (GAAP)allow companies to use either the direct write-off method or the allowance method to determine uncollectible-account expense.

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GAAP requires the use of the allowance method for estimating uncollectible accounts, as it adheres to the matching principle, while the direct write-off method is not allowed under GAAP for financial reporting purposes.

Generally Accepted Accounting Principles (GAAP)allow Companies to Use Either the Direct