Which of the Following Is a Disadvantage of the Direct

question 10

Multiple Choice

Which of the following is a disadvantage of the direct write-off method of accounting for bad debts expense?

• A) The direct write-off method requires complex computation for the estimation of bad debts expense.
• B) The direct write-off method requires extra adjusting entries to write off bad debts.
• C) The direct write-off method is not consistent with the accrual basis of accounting.
• D) The direct write-off method requires additional journal entries to be passed through Allowance for Doubtful Accounts.

---

Definitions:

Demanding Tone

A manner of communication that is authoritative and insists on immediate attention or compliance.

Compliance

The act of adhering to established guidelines, standards, or laws.

Routine Request

A standardized or commonly made inquiry or appeal for information, services, or action in the course of regular operations or transactions.

Complex Requests

Inquiries or demands that involve multiple steps, conditions, or elements, often requiring careful consideration and planning to execute.