Requirement $2.$ What are some limitations that Alpha Performance Cell Phones will encounter when using the

direct write$-$off method?

A$.$ Alpha Performance Cell Phones will encounter limitations with the direct write$-$off method because it violates

the matching principle. The matching principle requires that the expense of uncollectible accounts be matched

with the related revenue.

B$.$ Alpha Performance Cell Phones will encounter limitations with the direct write$-$off method because it will result

in understating profits and net assets every year the method is used.

C$.$ Alpha Performance Cell Phones will encounter limitations with the direct write$-$off method because it is

complicated and very costly to implement.

D$.$ Alpha Performance Cell Phones will not encounter any limitations with the direct write$-$off method because it

adheres to the matching principle by matching the expense of uncollectible accounts with the related revenue.