The period-end adjusting entry for Bad Debts Expense under the direct write-off method is:

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The direct write-off method does not require a period-end adjusting entry for Bad Debts Expense. Instead, Bad Debts Expense is recorded only when a specific customer's account is deemed uncollectible and is written off as a loss. This method is not acceptable under generally accepted accounting principles (GAAP) for financial reporting purposes due to its lack of conservatism and matching principle.

The Period-End Adjusting Entry for Bad Debts Expense Under the Direct