Under the direct write-off method,bad debt expense is recorded at the time accounts are known to be uncollectible.

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Under the direct write-off method, bad debt expense is recorded at the time when the accounts are known to be uncollectible, as opposed to being estimated and recorded in advance. The specific amount of the uncollectible account is written off as a bad debt expense, thus reducing the accounts receivable balance.

Under the Direct Write-Off Method,bad Debt Expense Is Recorded at the Time