Question: Why is the allowance method preferred over the direct write-off method of accounting for uncollectible accounts? A. Determining worthless accounts under direct write-off method is
Why is the allowance method preferred over the direct write-off method of accounting for uncollectible accounts?
A. Determining worthless accounts under direct write-off method is difficult to do.
B. Improved matching of uncollectible accounts expense with related revenue.
C. Estimates are used.
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