Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 27 - No. 14)
Which accounting method is being used if a company records bad debt expense only when a specific account is determined to be uncollectible?
Allowance Method
Direct Write-off Method
Percentage of Sales Method
Aging of Receivables Method
Explanation
The direct write-off method recognizes bad debt expense at the point a debt is determined to be irrecoverable.
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