The direct write-off method records Uncollectible-Account Expense:
A)in the accounting period each sale occurs.
B)at the end of the accounting period.
C)when the specific account receivable is determined to be uncollectible.
D)in the accounting period one year after the sale date.

Question

Quizplus · Accepted Answer

The direct write-off method records Uncollectible-Account Expense when the specific account receivable is determined to be uncollectible. This means that the expense is recognized when it is clear that the customer will not pay back the amount they owe. This can happen at any time during the accounting period, not necessarily at the end of it. The other choices (A, B, and D) are not accurate as they do not reflect the specific timing of when the expense should be recognized.

The Direct Write-Off Method Records Uncollectible-Account Expense