The method that recognizes losses from uncollectible accounts in the period when a firm decides that specific customers' accounts are uncollectible is called the
A)direct write-off method.
B)allowance method.
C)percentage of sales method.
D)bad debt determination method.
E)indirect write-off method.

Question

Quizplus · Accepted Answer

The direct write-off method recognizes losses from uncollectible accounts at the point when a firm decides specific customer accounts are uncollectible, directly writing off the bad debts against accounts receivable.

The Method That Recognizes Losses from Uncollectible Accounts in the Period