One of the methods of accounting for uncollectible accounts is the direct write-off method. Indicate whether each of the following statements is true or false.
_____ a) The direct write-off method does not comply with GAAP if uncollectible accounts expense is material.
_____ b) The direct write-off method is allowed for some companies because of the going concern concept.
_____ c) The direct write-off method requires an advance estimate of anticipated uncollectible accounts.
_____ d) The direct write-off method is easier to use than the allowance method.
_____ e) The direct write-off method does not require the use of an allowance account.

Question

Quizplus · Accepted Answer

The Answer of One of the methods of accounting for uncollectible accounts is the direct write-off method. Indicate whether each of the following statements is true or false.
_____ a) The direct write-off method does not comply with GAAP if uncollectible accounts expense is material.
_____ b) The direct write-off method is allowed for some companies because of the going concern concept.
_____ c) The direct write-off method requires an advance estimate of anticipated uncollectible accounts.
_____ d) The direct write-off method is easier to use than the allowance method.
_____ e) The direct write-off method does not require the use of an allowance account.

One of the Methods of Accounting for Uncollectible Accounts Is