5.A primary weakness of the direct write-off method is that

a.it is based on estimates.

b.it understates accounts receivable on the balance sheet.

c.the expense of a bad debt is not matched to the period that generated the uncollectible sale amount.

d.it is too difficult for many companies to use.

6.

The direct write-off method is acceptable for use by businesses when

a.a large amount of receivables will become uncollectible.

b.they have large receivable balances as a part of current assets.

c.they sell most of their goods or service for cash or credit card.

d.they make all their sales on account and do not have cash sales.