The direct write-off method is acceptable for financial reporting purposes only if the bad debt losses are insignificant. This is a false statement because the direct write-off method can only be used for tax reporting. This is a false statement because the direct write-off method violates the matching principle. This is a true statement based on the concept of materiality. This is a true statement because companies can choose either the direct write-off or the allowance method for financial reporting, as long as they consistently apply the method