Asked by Rachael Oreilly on May 26, 2024
Verified
Generally accepted accounting principles do not normally allow the use of the direct write-off method of accounting for uncollectible accounts.
Direct Write-off
An accounting method where uncollectible accounts receivable are written off directly against income at the time they are deemed irrecoverable.
- Identify the requirements and allowances under GAAP for recording uncollectible accounts.
Verified Answer
CM
Collin MireaultMay 26, 2024
Final Answer :
True
Explanation :
This statement is true. Instead, the allowance method is preferred for reporting and accounting for uncollectible accounts.
Learning Objectives
- Identify the requirements and allowances under GAAP for recording uncollectible accounts.
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