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Which Statement Regarding the Direct Write-Off Method of Bad Debts

Question 17

Multiple Choice

Which statement regarding the direct write-off method of bad debts is not true?


A) Future bad debts are not required to be estimated.
B) The method is justified on the basis of simplicity.
C) Bad debts are matched against the related sales revenue.
D) Bad debts are written off when they are determined to be uncollectable.

Correct Answer:

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