csheng2935 csheng2935
  • 01-12-2021
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What is the main difference between the direct write-off method and the allowance method?.

Respuesta :

adaly28
adaly28 adaly28
  • 01-12-2021

Answer:

Under direct write-off method, a bad debt is charged to expense as soon as it is apparent that an invoice will not be paid. Under the allowance method, an estimate of the future amount of bad debt is charged to a reserve account as soon as a sale is made.

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