When Is It Acceptable to Use the Direct Write-Off Method

question 38

Multiple Choice

When is it acceptable to use the direct write-off method of accounting for uncollectible accounts?

• A)If the dollar amount of uncollectible accounts is not material.
• B)If most uncollectible accounts do not occur in the period of sale.
• C)If most sales are made to other businesses.
• D)All of these answer choices are correct.

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