Question: The direct write-off method will recognize the Bad Debts Expense when the customer account is declared uncollectible. The direct method does not use the Allowance

The direct write-off method will recognize the Bad Debts Expense when the customer account is declared uncollectible. The direct method does not use the Allowance for Doubtful Accounts, because no estimate is made for bad debts. This method does not follow the matching principle in the accrual basis of accounting.

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