This method is most often used by small companies with few receivables.

A) Direct write-off method
B) Aging of receivables method
C) Percent of sales method
D) Allowance method

Small Companies

Businesses with a relatively small market share or workforce, often defined by specific criteria such as revenue, assets, or number of employees.

Receivables

Money owed to a company by its customers or clients for goods or services that have been delivered but not yet paid for.

Direct Write-off Method

An accounting method where uncollectible accounts receivable are directly written off against income at the time they are considered unrecoverable.