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

understates accounts receivable on the balance sheet

violates the matching principle

is too difficult to use for many companies

is based on estimates
iolates the matching principle

1 Answer

1 vote

Answer:

violates the matching principle

Step-by-step explanation:

The direct write-off method is an accounting method for recognizing bad debts expense arising from credit sales when individual invoices has been identified as uncollectible.

In Accounting, one of the weaknesses of the direct write-off method is that it violates the matching principle.

The direct write-off method is a method of accounting for uncollectible receivables.

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User Jungwon
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