When is bad debts expense recorded when using the direct


Question: 1. When is bad debts expense recorded when using the direct write-off method?

2. What are some limitations of using the direct write-off method?

3. When is bad debts expense recorded when using the allowance method?

4. When using the allowance method, how are accounts receivable shown on the balance sheet?

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Accounting Basics: When is bad debts expense recorded when using the direct
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