Under the direct charge-off method of dealing with uncollectible accounts,
A)revenues and expenses are properly matched.
B)Accounts Receivable is shown on the balance sheet at net realizable value.
C)Uncollectible Accounts Expense is recorded in the period of the sale.
D)no Allowance for Uncollectible Accounts exists.

Question

Quizplus · Accepted Answer

Under the direct charge-off method, there is no allowance account; uncollectible accounts are directly written off when deemed uncollectible.

Under the Direct Charge-Off Method of Dealing with Uncollectible Accounts