Question: When comparing the direct write-off method and the allowance method of accounting for uncollectible receivables, a major difference is that the direct write-off method

When comparing the direct write-off method and the allowance method of accounting for uncollectible receivables, a major difference is that the direct write-off method uses a percentage of sales method to estimate uncollectible accounts. is used primarily by large companies with many receivables. is used primarily by small companies with few receivables. uses an allowance account.

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