The direct write-off method does a better job of matching revenues and expenses than does the allowance method.
Answer the following statement true (T) or false (F)
False
The allowance method of accounting for uncollectible accounts is conceptually superior to the direct write-off method, in which uncollectible accounts expense is recognized when an account is determined to be uncollectible. The direct write-off method fails to match revenues with expenses and overstates accounts receivable on the balance sheet. It is easier to use, however, and is permitted by generally accepted accounting principles if the amount of uncollectible accounts expense is immaterial.
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