Following Generally Accepted Accounting Principles,two methods to estimate uncollectible accounts receivable are the direct write-off method and the allowance method.

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Quizplus · Accepted Answer

The direct write-off method is not in accordance with Generally Accepted Accounting Principles (GAAP) because it does not match expenses with revenues in the same period. The allowance method is the GAAP-compliant method for estimating uncollectible accounts.

Following Generally Accepted Accounting Principles,two Methods to Estimate Uncollectible Accounts