The direct write-off method records bad debt expense only when an account becomes uncollectible, which is not always in the same period as the sale. for this reason, the direct write-off method violates the

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Anna

Business

17 November, 09:44

The direct write-off method records bad debt expense only when an account becomes uncollectible, which is not always in the same period as the sale. for this reason, the direct write-off method violates the

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Hana · Answer 1

The direct write-off method violates the matching principal, which says that revenues and expenses are recorded in period that they occur (not necessarily when they are collected/written off).