When determining the uncollectible accounts expense in computing taxable income,income tax regulations:
A)Require the allowance method.
B)Require the direct write-off method.
C)Require the income statement approach.
D)Require the same method be used for both tax and financial statement purposes.

Question

Quizplus · Accepted Answer

Income tax regulations require the use of the direct write-off method for determining the uncollectible accounts expense in computing taxable income. This method recognizes bad debts only when specific accounts are deemed uncollectible and are directly written off.

When Determining the Uncollectible Accounts Expense in Computing Taxable Income,income