Which of the following methods is not an appropriate method for estimating bad debt expense for companies whose uncollectible accounts are material?

Question

Quizplus · Accepted Answer

The direct write-off method is not considered an appropriate method for estimating bad debt expense when uncollectible accounts are material because it does not match expenses with revenues in the period in which the revenues are earned. It recognizes bad debts only when specific accounts are deemed uncollectible, which could be in a different period from when the sales were made.

Which of the Following Methods Is Not an Appropriate Method