Paragraph Styles Editing Volon 2. Fusion uses the direct write-off method to record bad debts and does not estimate bad debt expense and create an allowance as required by GAAP. They don't think its material, but the company is growing, and this year's write-offs totaled $30,000 (about 4% of credit sales)... They have no procedures for determining which accounts to write-off, and there is no approval process. o Finding 0 Risk/Concern Page 1 of 3 Recommendation Focus