The direct write-off method for uncollectible accounts violates the matching principle.

Question

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The direct write-off method for uncollectible accounts does not match the expenses with the revenues in the same accounting period, which violates the matching principle. This method writes off the bad debt expense only when the account becomes fully uncollectible, which could happen in a later period than the one in which the sale was made. Therefore, this method does not accurately reflect the actual bad debt expense incurred by the company in the same period that the sale was made, which violates the matching principle.

The Direct Write-Off Method for Uncollectible Accounts Violates the Matching