Final answer:
The direct write-off method of accounting for uncollectible accounts involves directly reducing the specific customer's account by the amount of the uncollectible debt.
Step-by-step explanation:
The direct write-off method of accounting for uncollectible accounts is used to record the loss from uncollectible accounts as soon as it is determined to be uncollectible. Under this method, the specific customer's account is directly reduced by the amount of the uncollectible debt.
For example, if a company determines that a customer owes $500 and is unable to pay, the company would directly reduce that customer's account receivable by $500.
The direct write-off method is typically used by small businesses or for recording infrequent uncollectible accounts.