One disadvantage of the allowance method (over the direct write-off method)for recording uncollectible accounts is that it generally matches bad debt expense with the revenue it helped to generate.

Question

Quizplus · Accepted Answer

The statement in the question is actually describing an advantage of the allowance method, not a disadvantage. Therefore, the correct answer is B (false).

One Disadvantage of the Allowance Method (Over the Direct Write-Off