Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is debited

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Under the direct write-off method, Bad Debt Expense is only debited when an account is determined to be uncollectible. This means that the company waits until they have identified a specific account as uncollectible before recording it as an expense. This method does not provide for estimating the amount of uncollectible accounts and therefore does not record bad debt expenses until a specific account proves uncollectible.

Under the Direct Write-Off Method of Accounting for Uncollectible Accounts