Accounts Receivable Bad Debt Expense Direct Write Off Method Vs Allowance Method

Accounts Receivable Bad Debt Expense Direct Write Off Method Vs Allowance Method

Then, discuss the primary advantages and disadvantages of applying the direct write-off and the allowance method of writing off accounts. Even though the direct write-off method is not acceptable for generally accepted accounting principles (GAAP) reporting, take a position on whether or not estimating the allowance for doubtful accounts distorts gross income. Propose an alternative method to increase the accuracy of reporting. please Explain your rationale.