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Direct Write-off Method
A method where uncollectable debts are charged to expense only when they are determined to be uncollectable.
Bad Debts
Refers to the amount of money owed to a company that is unlikely to be paid by the debtor, considered as a loss to the company.
Direct Write-off Method
An accounting practice where uncollectable debts are directly removed from the accounts receivable balance upon determination of their uncollectibility.
Bad Debts
Funds that a business or individual is unable to collect because the debtor is unable to pay.
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