The direct write-off method of accounting for bad debts records the loss from an uncollectible account receivable when it is determined to be uncollectible.

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The direct write-off method involves recording the bad debt expense when a specific account receivable is identified as uncollectible, rather than estimating and recording a provision for bad debts based on a percentage of total accounts receivable.

The Direct Write-Off Method of Accounting for Bad Debts Records