Asked by Raphaela Cruickshank on May 04, 2024
Verified
The direct write-off method records bad debt expense in the year the specific account receivable is determined to be uncollectible.
Direct Write-off
A method for recognizing bad debt expense when a specific account receivable is determined to be uncollectible, directly reducing accounts receivable and recognizing the expense.
Bad Debt Expense
An accounting expense recognized for receivables that are no longer considered collectible, impacting both the balance sheet and income statement.
Uncollectible
Refers to debt or receivables that cannot be recovered or are very unlikely to be paid by debtors.
- Become familiar with the concept and practical application of the direct write-off method for noncollectable accounts.
Verified Answer
Learning Objectives
- Become familiar with the concept and practical application of the direct write-off method for noncollectable accounts.
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