​Small Companies Can Use Either the Direct Write-Off Method or the Allowance

question 111

True/False

​Small companies can use either the direct write-off method or the allowance method.

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Definitions:

Payee

The person or entity to whom a check, draft, or electronic payment is made out and who is to receive the funds.

Posting

The act of publishing content or information on a digital platform, such as a blog, forum, or social media site.

Certified Check

A check that has been accepted by the bank on which it is drawn. Essentially, the bank, by certifying (accepting) the check, promises to pay the check at the time the check is presented.

Paper Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to the order of a person named therein.