When is it acceptable to use the direct write-off method of accounting for uncollectible accounts?
A)If the dollar amount of uncollectible accounts is not material.
B)If most uncollectible accounts do not occur in the period of sale.
C)If most sales are made to other businesses.
D)All of these.

Question

Quizplus · Accepted Answer

It is only acceptable to use the direct write-off method if uncollectible accounts are immaterial to the financial statements.

When Is It Acceptable to Use the Direct Write-Off Method