For a company with significant uncollectible receivables,the direct write-off method is unsuitable because ________.

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The direct write-off method violates the matching principle because it does not match expenses with the revenue they helped generate. Instead, it delays the recognition of bad debt expense until the specific customer's account is deemed uncollectible. This can result in inaccuracies in financial statements and does not provide an accurate representation of the company's true financial position. A more appropriate method for recognizing bad debt expense would be the allowance method, which uses estimates to recognize expenses in the same accounting period as the related revenue.

For a Company with Significant Uncollectible Receivables,the Direct Write-Off Method