Question: Why is the allowance method preferable to the direct write - off method? The allowance method relies on estimates which are always accurate fithd stable
Why is the allowance method preferable to the direct writeoff method?
The allowance method relies on estimates which are always accurate fithd stable among years.
The allowance method recognizes the expense of a bad debt in the same period as the sale.
The allowance method provides a substantial tax savings.
The allowance method recognizes expens bad debt in the year the account is determined uncollectible.
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