QUESTION 23 4 points Save Companies use two methods to account for unolletble acoounts, the direct wrte-off mothod and the allowance method. O True O False QUESTION 24 4 points Save Ans The expense recognition (matching) principle permits the use of the direct write-off method of accounting for uncollectible accounts when bad debts are very large in relation to a company's other financial statement items as sales and net income. True O False QUESTION 25 4 points Save Answer Factoring receivables is beneficial to a seller for all of the following reasons except O Allows firms to receive cash earlier O Passes ownership of the receivables to the factor O There are no fees for factoring O Seller avoids the cost of billing and accounting for receivables. O May transfer the risk of bad debts to the factor