Which of the following methods of accounting for uncollectible accounts does not properly match costs with revenues?
A) Percentage of sales
B) Percentage of receivables
C) Direct write-off
D) Aging schedule

Question

Quizplus · Accepted Answer

The direct write-off method does not properly match costs with revenues because it does not recognize uncollectible accounts until they are deemed uncollectible and written off, which could be in a different accounting period than when the sale was made. The other methods (percentage of sales, percentage of receivables, aging schedule) all attempt to estimate and account for uncollectible accounts in the same period as the related sales revenue.

Which of the Following Methods of Accounting for Uncollectible Accounts