The direct write off method is generally not allowed under GAAP because management selects the period of write off thus allowing earnings management. Where as an estimation of uncollectible accounts an entry is necessary each period to accurately match revenues and expenses.

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The direct write off method is not allowed under GAAP because it does not accurately match revenues and expenses, as well as allowing for earnings management. An estimation of uncollectible accounts is required to provide a more accurate representation of the financial statements.

The Direct Write Off Method Is Generally Not Allowed Under