Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 23 - No. 19)
When would it be appropriate to use the direct write-off method?
When the amount of uncollectible accounts is material.
When the company wants to reduce taxes.
When the company is small and bad debts are not significant.
When the company wants to have the most accurate financial statements.
Explanation
It's appropriate when bad debts are not significant.
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