No allowance for doubtful accounts is used for the
A)direct writeoff method.
B)percentage of credit sales method.
C)allowance method.
D)aging of accounts receivable method.

Question

Quizplus · Accepted Answer

The direct writeoff method does not consider any allowance for doubtful accounts, as it writes off the doubtful accounts as and when they become uncollectible. Other methods such as the percentage of credit sales, allowance method, and aging of accounts receivable method all require the use of an allowance for doubtful accounts.

No Allowance for Doubtful Accounts Is Used for the