A company recognizes bad debts by writing off the receivable only when it becomes certain that the customer will not be paying.What is this method called?

Question

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The Direct write-off method involves recognizing bad debts at the point when it is certain that the customer will not pay. This method directly writes off the bad debt when it becomes apparent that the receivable cannot be collected.

A Company Recognizes Bad Debts by Writing Off the Receivable