The direct write-off method is a method of accounting for bad debts that is approved by the IRS.

Question

Quizplus · Accepted Answer

This is true. The direct write-off method is a commonly used method of accounting for bad debts where the company records the bad debt expense when a specific customer's account is determined to be uncollectible. This method is allowed by the IRS, but it is not always the most accurate method for estimating bad debt expense.

The Direct Write-Off Method Is a Method of Accounting for Bad