Requirement $2.$ What are some limitations that Peak Performance Cell Phones will encounter when using the direct write$-$off method?

A$.$ Peak 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$.$ Peak 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$.$ Peak Performance Cell Phones will encounter limitations with the direct write$-$off method because it is complicated and very costly to implement.

D$.$ Peak 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.