A company uses the direct write-off method to account for bad debts.Bad debts expense will be estimated as a percentage of sales.

Name: A company uses the direct write-off method to account for bad debts.Bad debts expense will be estimated as a percentage of sales.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct write-off method does not involve estimating bad debts as a percentage of sales. Instead, bad debts are recorded when they are deemed uncollectible.

A Company Uses the Direct Write-Off Method to Account for Bad