Get expert insights and reliable answers to your questions on IDNLearn.com. Our platform offers reliable and detailed answers, ensuring you have the information you need.

What is the main difference between the direct write-off method and the allowance method?.

Sagot :

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.

We are happy to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Your search for answers ends at IDNLearn.com. Thank you for visiting, and we hope to assist you again soon.