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The direct write-off method:_____.a. may be used only by businesses with five or fewer accounts receivable.b. is used by businesses whose receivables are a small part of their current assets.c. does not allow for reinstatement if the amount owed is received after being written off.d. may not be used by companies that accept MasterCard or VISA.

Respuesta :

Lanuel

Answer:

c. does not allow for reinstatement if the amount owed is received after being written off.

Explanation:

The direct write-off method does not allow for reinstatement if the amount owed is received after being written off. It basically recognizes bad debt expenses arising from credit sales and does not allow for reinstatement.

The direct write-off method is similar to keeping money in a reserve account.

maranathaoye

Answer:

a. may be used only by businesses with five or fewer accounts receivable

Explanation:

Direct write-off method definition is a method use to identify bad debts expenses as a result of credit sales. The method does not allow allowance account, instead an account receivable is directly written off to expenses only after determining the account is uncollectible. This type of method is needed for the purpose of income tax.

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