The direct charge-off method makes no attempt to match bad-debt losses with revenues.

Name: The direct charge-off method makes no attempt to match bad-debt losses with revenues.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct charge-off method simply writes off the uncollectible accounts as they are identified, without any attempt to match the bad debt losses with revenues. It does not consider the specific transaction and revenue it is associated with.

The Direct Charge-Off Method Makes No Attempt to Match Bad-Debt