A company uses the direct write-off method to account for uncollectible receivables.Uncollectible account expense will be estimated as a percentage of sales.

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The direct write-off method does not involve estimating uncollectible accounts as a percentage of sales. Instead, it involves recording bad debt expense only when a specific account is deemed to be uncollectible and is written off.

A Company Uses the Direct Write-Off Method to Account for Uncollectible