The Direct Write-Off Method for Uncollectible Accounts Receivable

question 98

Multiple Choice

The direct write-off method for uncollectible accounts receivable:

• A)reports receivables at their net realizable value.
• B)does not use an Allowance for Uncollectible Accounts.
• C)is considered to follow Generally Accepted Accounting Principles.
• D)estimates uncollectible accounts as a percentage of sales.

---

Definitions:

Advantages

The favorable attributes or benefits that give an individual, product, or service a competitive edge over others.

Disadvantages

Bottlenecks or drawbacks that may impede progress or success.

Safety Precautions

Measures taken in advance to prevent accidents or harm to people at work, in public places, or during activities.

Stock Clerk

An employee responsible for maintaining the stock levels of products in a retail or warehouse setting, ensuring items are well-organized and available.