The Direct Write-Off Method of Accounting for Bad Debts

question 97

Multiple Choice

The direct write-off method of accounting for bad debts

• A) Often fails to match bad debt losses with sales for the same period
• B) Is subject to a significant amount of estimation error
• C) Causes accounts receivable to appear on the balance sheet at their estimated net realizable value
• D) Requires that losses from bad debts be recorded in the period in which sales are made

---

Definitions:

Amyotrophic Lateral Sclerosis

A progressive neurodegenerative disease affecting nerve cells in the brain and spinal cord, leading to loss of muscle control.

Priority Problem

An issue identified as having significant importance or urgency, requiring immediate attention or action to prevent or address serious outcomes.

Bradypnea

A slower than normal breathing rate, which might indicate a respiratory or brain condition, requiring further medical examination.

Swollen Nodes

Enlarged lymph nodes often indicating an infection or sometimes, more serious conditions such as cancer.