direct write-off method is acceptable ONLY when an aging of accounts receivable is unrealistic due to a large volume of receivables.

Question

Quizplus · Accepted Answer

The direct write-off method is generally not preferred for financial reporting purposes because it violates the matching principle, but it is acceptable for small, immaterial amounts or when receivables are not significant, not because an aging of accounts receivable is unrealistic due to a large volume of receivables.

Direct Write-Off Method Is Acceptable ONLY When an Aging of Accounts