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why is the allowance method preferred over the direct write off method? Explain in detail.

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Accounting

why is the allowance method preferred over the direct write offmethod? Explain in detail.

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The direct write off method does not relate the bad debt expense to the period in which the relevant credit sale occurred In other words the credit sale which gave rise to the bad debt may have occurred in an earlier accounting period with the result    See Answer
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why is the allowance method preferred over the direct write offmethod? Explain in detail.

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