Direct write-off method
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Direct write-off method is the method of writing off uncollectibles when they occur and thus does not use the Allowance for Doubtful Accounts. This method does not fulfill the matching principle of accrual accounting.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Direct write-off method. The method of writing off uncollectibles when they occur and thus does not use the Allowance for Doubtful Accounts. This method does not fulfill the matching principle of accrual accounting.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
