Direct Write-off Method
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Description
A method of accounting for uncollectible receivables in which no expense is recognized until individual accounts are determined to be worthless. At that point the account receivable is written off, with an offsetting debit to impairment loss of receivable. Fails to match revenue and related expenses.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Accounts receivable#Bookkeeping
Learning Material
Covered in Topic(s)
| Financial Assets |