The Direct Write-Off Method

question 30

Multiple Choice

The direct write-off method:

• A)results in better matching of costs with revenues than the allowance method.
• B)is an acceptable method under generally accepted accounting principles (GAAP).
• C)requires that losses from bad debts be recorded in the period in which sales are made.
• D)does not report accounts receivable on the balance sheet at their net realizable value.