The direct write-off method of accounting for uncollectible receivables is primarily used by small,nonpublic companies.

Name: The direct write-off method of accounting for uncollectible receivables is primarily used by small,nonpublic companies.
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Quizplus · Accepted Answer

The direct write-off method is not in accordance with Generally Accepted Accounting Principles (GAAP) and is not permitted for larger, publicly traded companies. However, smaller nonpublic companies may use this method for simplicity and cost-effectiveness.

The Direct Write-Off Method of Accounting for Uncollectible Receivables Is