The direct write-off method is only acceptable for companies that have very few uncollectible receivables.

Question

Quizplus · Accepted Answer

The direct write-off method is generally considered acceptable for companies with very few uncollectible accounts because it has minimal impact on the financial statements, and such companies do not need to comply with the matching principle as strictly as larger companies with more significant amounts of receivables.

The Direct Write-Off Method Is Only Acceptable for Companies That