Question: Why is the allowance method preferred over the direct write-off method of accounting for bad debts? Allowance method is used for tax purposes. Estimates are

Why is the allowance method preferred over the direct write-off method of accounting for bad debts? Allowance method is used for tax purposes. Estimates are used. Determining worthless accounts under direct write-off method is difficult to do. Improved matching of bad debt expense with revenue

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