Which Statement Regarding the Direct Write-Off Method of Bad Debts

question 6

Multiple Choice

Which statement regarding the direct write-off method of bad debts is not true?

• A) Future bad debts are not required to be estimated.
• B) The method is justified on the basis of simplicity.
• C) Bad debts are matched against the related sales revenue.
• D) Bad debts are written off when they are determined to be uncollectable.

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Definitions:

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