Asked by zereniah mungate on Jun 12, 2024
Verified
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.
Uncollectible Account Receivable
An accounting term for receivables from sales that are considered not collectible, resulting in a bad debt expense.
- Master the concepts of the allowance and direct write-off methods and their application in the accounting of uncollectible accounts.
Verified Answer
DM
Diana MendezJun 15, 2024
Final Answer :
True
Explanation :
The direct write-off method records the loss from an uncollectible account receivable when it is determined to be uncollectible, rather than making an estimated allowance for bad debts beforehand.
Learning Objectives
- Master the concepts of the allowance and direct write-off methods and their application in the accounting of uncollectible accounts.
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