Which method of recording uncollectible accounts expense is consistent with accrual accounting? allowance or direct write off?

Question added by Mohammad Alkhateeb , Accountant , D'ARC
Date Posted: 2016/11/28

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by AHMAD OMAR CMA-CertIFR , Accounting Manager , NADIA BAKHURJI ARCHITECTS & INTERIOR DESIGN CONSULTANTS

Allowance for doubtful accounts - this method help the company to estimate the bad debt and apply the matching principle between bad debt expenses and related sale in the same period.

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