Senior management is trying to decide whether to use the direct write-off or allowance method for recording bad debt on accounts receivables.
Which of the following would be the best argument for using the direct write-off method?
Senior management is trying to decide whether to use the direct write-off or allowance method for recording bad debt on accounts receivables.
Which of the following would be the best argument for using the direct write-off method?
The direct write-off method is useful when losses from bad debts are considered insignificant, as it only records the bad debt expense when the specific account is deemed uncollectible. This method can simplify accounting for small amounts of bad debts without needing a more complex allowance estimation process.
the correct answer is A
Agree A is correct