Which method is not allowed under Generally Accepted Accounting Principles for the purpose of accounting for uncollectible accounts?

Question

Quizplus · Accepted Answer

The direct write-off method is not allowed under GAAP because it does not match expenses with revenues and does not provide an accurate representation of the company's financial position. Instead, GAAP requires the use of an allowance method, aging method, or percentage-of-receivables method to account for uncollectible accounts.

Which Method Is Not Allowed Under Generally Accepted Accounting Principles