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29 May, 08:52

The direct write off is used when:

a. Uncollectible accounts are not anticipated or immaterial.

b. A company elects to use this method as one of several alternatives.

c. A company has greater cash outflows than cash inflows.

d. the company expects excessive sales return.

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Answers (1)
  1. 29 May, 09:05
    0
    The correct answer is letter "A": Uncollectible accounts are not anticipated or immaterial.

    Explanation:

    Direct write-off is a method used to record debts from credit sales. An allowance account is not used with this method but an account receivable directly written-off for the outstanding amount once it is determined to be uncollectible. This method is used for tax-reporting purposes.
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Home » Business » The direct write off is used when: a. Uncollectible accounts are not anticipated or immaterial. b. A company elects to use this method as one of several alternatives. c. A company has greater cash outflows than cash inflows. d.
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