Companies use two methods to account for uncollectible accounts: the direct write-off method and the allowance method. ( )
举一反三
- Under the direct write-off method, allowance for Uncollectible accounts does not exist.
- When the allowance method is used for bad debts ,the entry to write off an individual account known to be uncollectible involves a
- The direct write-off method of accounting for bad debts records the loss from an uncollectible account receivable when it is determined to be uncollectible.
- Under the allowance method of accounting for uncollectible accounts receivable, no attempt is made to estimate the bad debt expense. ( )
- The matching principle requires use of the direct write-off method of accounting for bad debts.