Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 34 - No. 32)
If a company uses the direct write-off method, which of the following is true?
Bad debt expense is recognized when the estimate of bad debts is made.
Bad debt expense is recognized when an account is deemed uncollectible.
An allowance for doubtful accounts is maintained.
It follows the matching principle more accurately.
Explanation
The direct write-off method only recognizes bad debt expense when an account is deemed uncollectible.
Comments (0)
