The direct writeoff method recognizes bad debts only when they know the customer is NOT going to pay.

Name: The direct writeoff method recognizes bad debts only when they know the customer is NOT going to pay.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct writeoff method does not anticipate bad debts or estimate the amount of bad debts, but instead waits until the specific customer account is identified as uncollectible. At this point, the bad debt is directly written off by removing the receivable from the accounting records.

The Direct Writeoff Method Recognizes Bad Debts Only When They