The two methods of accounting for uncollectible receivables are the direct write-off method and the:
A) equity method.
B) cash method.
C) interest method.
D) allowance method.

Question

Quizplus · Accepted Answer

The allowance method is used alongside the direct write-off method for accounting for uncollectible receivables. It involves estimating uncollectible accounts at the end of each period, allowing businesses to match revenues and expenses more accurately in the period they are incurred.

The Two Methods of Accounting for Uncollectible Receivables Are the Direct