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The direct write off is used when: a. Uncollectible accounts are not anticipated or immaterial. b. A company elects to use this method as one of several alternatives. c. A company has greater cash outflows
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The direct write off is used when:

a. Uncollectible accounts are not anticipated or immaterial.
b. A company elects to use this method as one of several alternatives.
c. A company has greater cash outflows than cash inflows.
d. the company expects excessive sales return.

User Mike Sprague
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Answer:

The correct answer is letter "A": Uncollectible accounts are not anticipated or immaterial.

Step-by-step explanation:

Direct write-off is a method used to record debts from credit sales. An allowance account is not used with this method but an account receivable directly written-off for the outstanding amount once it is determined to be uncollectible. This method is used for tax-reporting purposes.

User Zarzych
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