The Allowance Method Overcomes Shortcomings of the Direct Write-Off Method

Multiple Choice

The allowance method overcomes shortcomings of the direct write-off method because it

A) recognizes the loss from uncollectible accounts in the period in which the sale occurs and the firm recognizes revenue.
B) reduces the opportunity to manage earnings each period by deciding when particular customers' accounts become uncollectible.
C) reflects the amount a firm expects to collect in cash from the accounts receivable on the balance sheet.
D) all of the above.
E) none of the above.