The direct write-off method:

Name: The direct write-off method:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct write-off method does not use an allowance for uncollectible accounts. Instead, when a specific customer's account is deemed uncollectible, it is directly written off as a bad debt expense. This method is not considered generally acceptable accounting for financial statement purposes because it does not estimate uncollectible accounts as a percentage of sales or use an allowance account to record potential bad debts.

The Direct Write-Off Method