Question: Why is the allowance method preferable to the direct write-off method?Select answer from the options belowThe allowance method provides a substantial tax savings.The allowance method
Why is the allowance method preferable to the direct write-off method?Select answer from the options belowThe allowance method provides a substantial tax savings.The allowance method ensures that companies state receivables on the balance sheet at the net amount expected to be collected.The allowance method recognizes expense of a bad debt in the year the account is determined uncollectible.The allowance method relies on estimates which are always accurate and stable among years.
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