direct write off method

Definition

One of the two accounting techniques for charging-off bad debts (the other is called allowance method). In this method, the actual amount of uncollectible accounts receivable is deducted from the sales revenue in the accounting period in which they are determined to be uncollectible, instead of creating a provision for them in the period in which those sales occurred. Although this method is based on facts instead of on estimates, it goes contrary to the matching concept of accounting and is generally not acceptable for financial reporting purposes. However, it is the only bad debt write-off method allowed in the tax code applicable to most US firms. Also called direct charge-off method.

单词	direct write off method
释义	direct write off method Definition One of the two accounting techniques for charging-off bad debts (the other is called allowance method). In this method, the actual amount of uncollectible accounts receivable is deducted from the sales revenue in the accounting period in which they are determined to be uncollectible, instead of creating a provision for them in the period in which those sales occurred. Although this method is based on facts instead of on estimates, it goes contrary to the matching concept of accounting and is generally not acceptable for financial reporting purposes. However, it is the only bad debt write-off method allowed in the tax code applicable to most US firms. Also called direct charge-off method.
随便看	case card case in chief case law case of need case-sensitive case study cash cash account cash accounting cash accumulation method cash acknowledgment cash advance fee Kirkpatrick four levels evaluation model KISS principle kit kitting KJ method kluge knocked down flat knocked down (KD) knock-in option knock off knock-out option Knoop hardness (KH) knot