One of the Methods of Accounting for Uncollectible Accounts Is

question 101

Short Answer

One of the methods of accounting for uncollectible accounts is the direct write-off method.Indicate whether each of the following statements is true or false.
_____ a)The direct write-off method does not comply with GAAP if uncollectible accounts expense is immaterial.
_____ b)The direct write-off method is allowed for some companies because of the going concern concept.
_____ c)The direct write-off method requires an advance estimate of anticipated uncollectible accounts.
_____ d)The direct write-off method is easier to use than the allowance method.
_____ e)The direct write-off method does not require the use of an allowance account.

---

Definitions:

Duty to Be Careful

The duty to be careful, often referred to as a duty of care, is a legal obligation imposed on individuals to act with the caution and attentiveness of a reasonable person to avoid causing harm to others.

Director

An individual appointed or elected to oversee the management and strategic direction of a company or organization.

Due Diligence

Doing everything reasonable to avoid a problem leading to legal liability.

Peat Bog

A type of wetland terrain formed from partially decayed vegetation, known for its unique ecosystems and carbon storage capabilities.