If a Company Uses the Direct Write-Off Method of Accounting

Multiple Choice

If a company uses the direct write-off method of accounting for bad debts,

A) it is applying the matching principle.
B) it will record bad debts expense only when an account is determined to be uncollectible.
C) it will reduce the Accounts Receivable account at the end of the accounting period for estimated uncollectible accounts.
D) it will report accounts receivable on the balance sheet at their net realizable value.