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    Direct write off

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    The direct write off method certainly is the most 'accurate' method. While the lecture addresses the lack of the matching principal, what other reason might give you concern to use the direct write off method?

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    The other reason is that in the direct write-off method, the net realizable value of the receivables is never ...

    Solution Summary

    The solution explains the concerns with the direct write off method of writing off receivables.