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Accounts Receivable Bad Debt Expense Direct Write Off Method Vs Allowance Method
Then, discuss the primary advantages and disadvantages of applying the directwrite-off and the allowance method of writing off accounts. Even though thedirect write-off method is not acceptable for generally accepted accountingprinciples (GAAP) reporting, take a position on whether or not estimating theallowance for doubtful accounts distorts gross income. Propose an alternativemethod to increase the accuracy of reporting. please Explain your rationale.