Under the direct write-off method, uncollectible accounts expense is recognized

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Under the direct write-off method, uncollectible accounts expense is recognized when an account is determined to be uncollectible. This means that the expense is recognized only when the company knows that a customer will not be able to pay their outstanding balance, and the company writes off the balance as a bad debt. This method is not ideal for large companies, as it does not accurately match expenses with revenue and can distort financial statements.

Under the Direct Write-Off Method, Uncollectible Accounts Expense Is Recognized