The direct write-off method is the preferred way to apply the accrual basis for measuring bad-debt expense since it matches revenues and expenses on the income statement.

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The direct write-off method is not the preferred method for the accrual basis of accounting because it does not match bad debt expenses with the revenues they helped generate. The allowance method is preferred as it better adheres to the matching principle of the accrual basis.

The Direct Write-Off Method Is the Preferred Way to Apply