A major advantage of the "direct write-off method" over the allowance method of accounting for bad debts is simplicity.

Name: A major advantage of the "direct write-off method" over the allowance method of accounting for bad debts is simplicity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct write-off method only requires companies to record bad debts as they occur, while the allowance method requires more complex calculations and estimates for setting aside a reserve for future bad debts.

A Major Advantage of the "Direct Write-Off Method" Over the Allowance