A company uses the direct write- off method to account for uncollectable receivables. Bad debts expense will be estimated as a percentage of sales.

Name: A company uses the direct write- off method to account for uncollectable receivables. Bad debts expense will be estimated as a percentage of sales.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct write-off method records bad debts only when specific accounts are deemed uncollectible, not as a percentage of sales.

A Company Uses the Direct Write- Off Method to Account