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Which Statement Regarding the Direct Write-Off Method of Bad Debts

Question 4

Multiple Choice

Which statement regarding the direct write-off method of bad debts is untrue?


A) No estimate is made of future bad debts.
B) Bad debts are written off when they are determined to be uncollectable.
C) Its use is justified on the basis of simplicity.
D) Bad debts are matched against the related sales revenue.

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