Generally accepted accounting principles require that the direct write-off method be used for financial reporting purposes if it is also used for tax purposes.

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Generally accepted accounting principles require that companies use the accrual method of accounting for financial reporting purposes, regardless of the method used for tax purposes. The direct write-off method is not in accordance with the accrual method and is therefore not acceptable for financial reporting purposes.

Generally Accepted Accounting Principles Require That the Direct Write-Off Method