Why Is the Allowance Method Preferred Over the Direct Write-Off

question 17

Multiple Choice

Why is the allowance method preferred over the direct write-off method of accounting for bad debts?

• A) Determining worthless accounts under direct write-off method is difficult to do.
• B) Improved matching of bad debt expense with revenue.
• C) Allowance method is used for tax purposes.
• D) Estimates are used.

---

Definitions:

Viral DNA

The genetic material of a virus encoded in DNA rather than RNA, which the virus inserts into host cells to replicate and produce new viral particles.

Recombinant DNA

Composite DNA made in a laboratory by joining DNA fragments from multiple sources.

Restriction Enzymes

Enzymes that cut DNA at specific sequences, widely used in molecular biology for cloning and DNA manipulation.

Ligases

Enzymes that catalyze the joining of two molecules by forming a new chemical bond, often requiring the expenditure of energy derived from ATP.