Topic: Direct Write off Method
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Answers to Common Questions
Why is the direct write off method not accepted by GAAP?
There are two reasons why the direct write-off method is not allowed. First, applying the matching principle implies that the cost of the uncollectible accounts need to be expensed in the period of the sale. Giving credit to customers helps... Read More »
Source: http://wiki.answers.com/Q/Why_is_the_direct_write_off_method_not_...
What is Direct Write-Off Method?
Way of charging bad debt expense when an account receivable is actually deemed uncollectible. Thus, at the date it is certain that the customer will not be able to pay (in the most extreme instance, bankruptcy), the entry is to debit bad de... Read More »
Source: http://www.answers.com/topic/direct-write-off-method
How is the direct write off method used in accounting?
The actual amount of uncollectible accounts receivable is deducted from the sales revenue in the accounting period in which MORE? Read More »
Source: http://www.chacha.com/question/how-is-the-direct-write-off-method...
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Answers to Other Common Questions
A call from a bill collector isn't fun for anyone. The company making the call is faced with as serious a challenge as the consumer. The organization must determine when to stop pursuing accounts receivable. It must also look at the behavio...
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Source: http://www.ehow.com/how_2124620_account-bad-debt-using-specific.h...
Direct write-off normally does not match because the revenue from the sales was reported in an earlier period. It affects the revenues and expenses in the period it is written off in. If a company has many credit sales then it would be bett...
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Source: http://wiki.answers.com/Q/Why_does_the_direct_write-off_method_of...
Write-off of a specific bad debt .
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Source: http://www.answers.com/topic/direct-charge-off-method
In this method, the actual amount of uncollectible accounts receivable is deducted from the sales revenue in the accounting MORE?
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Source: http://www.chacha.com/question/what-is-affected-when-an-account-i...
The term write-off describes a reduction in recognized value. In accounting terminology, it refers to recognition of the MORE?
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DIRECT WRITE-OFF METHOD: A simple method to account for uncollectible accounts is the the direct write-off approach. Under this technique, a specific account receivable is removed from the accounting records at the time it is finally determ...
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Source: http://answers.yahoo.com/question/index?qid=20080210192730AAhY9OX
The entry to write off a bad account is a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
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Source: http://www.chacha.com/question/how-do-you-write-off-uncollectable...
