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.

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.

4.The direct write-off method is required

a. for companies that factor their receivables.

b. by GAAP.

c. where receivables are a large part of the current assets.

d. for federal income tax purposes.