Dictionary » Letter D » direct write-off method
A method for recognizing bad debts expense arising from credit sales. Under this method there is no allowance account. Rather, an account receivable is written-off directly to expense only after the account is determined to be uncollectible. This method is required for income tax purposes. See allowance method for bad debts expense on the income statements.
| » For more clarity on this term: |
← Go Back |
Learn about our 2010 Master Accounting Download Package Now you can highlight, make notes, and study away from your computer.
|