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

Why is the allowance method preferred over the direct write-off method

Why is the allowance method preferred over the direct write-off method of accounting f bad debts? a. Allowance method is used for tax purposes b. Estimates are used. c. Determining worthless accounts under direct write-off method is difficult to do. d. Improved matching of bad debt expense with revenue. 30

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