Discussion Question
• Watch A. Mursau's video titled "Accounts Receivable Bad Debt Expense (Direct Write Off Method Vs Allowance Method)":
https://www.youtube.com/watch?v=r3YPSwFsIps&feature=youtu.be
• Based on the information in the video, discuss the primary advantages and disadvantages of applying the direct write-off over the allowance method of writing off accounts. Take a position on whether or not estimating the allowance for doubtful accounts provides the opportunity to distorts gross income.
• Provide support for your rationale.