TB MC Qu$.5-148($Static$)$ The direct write$-$off method is generally...

The direct write$-$off method is generally not permitted for financial reporting purposes because:

Multiple Choice

It is too difficult to accurately estimate future bad debts.

Compared to the allowance method, it would allow greater flexibility to managers in manipulating reported net income.

Accounts receivable are not reported for the net amount expected to be collected.

This method is primarily used for tax purposes.