Question: When comparing the direct write-off and allowance methods, which of the following statements applies to the direct write-off method? a. An allowance account is used.

When comparing the direct write-off and allowance methods, which of the following statements applies to the direct write-off method?

a. An allowance account is used.

b. Primary users are large companies and those with a large amount of receivables.

c. The expense is recognized when the account is written off rather than in the period of sale.

d. The result is based on either a percentage of sales or an analysis of receivables.

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