One of the weaknesses of the direct write-off method is that it

A) understates accounts receivable on the balance sheet
B) violates the matching principle
C) is too difficult to use for many companies
D) is based on estimates

Direct Write-off Method

A method for handling bad debts by writing off specific uncollectible accounts receivable when they are deemed unrecoverable, impacting the income statement.

Matching Principle

An accounting principle that states expenses should be recorded during the period in which they are incurred, matched with the revenues they generate.