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What is the direct write off method?

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Question added by Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)
Date Posted: 2016/04/28
Sajid Ali
by Sajid Ali , Accountant , Construction Material Chemical Industries

When debt is determined as uncollectible, a journal entry is passed in which bad debts expense account is debited and accounts receivable account is credited as shown below. Direct write-off method does not use any allowance or reserveaccount

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