Which of the Following Is a Disadvantage of the Direct

Multiple Choice

Which of the following is a disadvantage of the direct write-off method of accounting for bad debts expense?

A) The direct write-off method requires complex computation for the estimation of bad debts expense.
B) The direct write-off method requires extra adjusting entries to write off bad debts.
C) The direct write-off method is not consistent with the accrual basis of accounting.
D) The direct write-off method requires additional journal entries to be passed through Allowance for Doubtful Accounts.