This company sells merchandise only on credit. For the year ended December 31, the following data are available:
-Refer to Aardvark Resale. Can the company use the direct write-off method rather than the allowance method to account for bad debts expense? Explain why or why not.

Question

This company sells merchandise only on credit. For the year ended December 31, the following data are available: 
-Refer to Aardvark Resale. Can the company use the direct write-off method rather than the allowance method to account for bad debts expense? Explain why or why not.

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The Answer of This company sells merchandise only on credit. For the year ended December 31, the following data are available: 
-Refer to Aardvark Resale. Can the company use the direct write-off method rather than the allowance method to account for bad debts expense? Explain why or why not.

This Company Sells Merchandise Only on Credit