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Why is the direct write-off method unacceptable

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Reference no: EM131641164

1. What does an amount reported as an allowance for uncollectible accounts represent?

2. How and when do businesses determine an account is uncollectible?

3. Why, then, is an allowance for uncollectible accounts amount computed in the first place?

4. Why is the direct write-off method unacceptable? Do you agree with the reasoning?

Please provide references only if you use outside sources.

Reference no: EM131641164

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