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Question 11 (4 points) The direct write-off method has one advantage-it is very simple to apply. True False
Question 12 (4 points) The direct write-off method of determining bad debt expense is subjective and can be manipulated by ma
Question 13 (4 points) The matching concept states that expenses incurred to produce particular revenues should be matched wi
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Answer #1

1. TRUE

The direct write off method is very simple to apply. No estimation of bad or doubtful debts is required in direct write off method. There is a direct charge against the income when the debts actually become bad or irrecoverable, Also, there is no need to open a separate allowance for doubtful accounts in case of direct write off method.

2. FALSE

Direct write off method cannot be manipulated by management because in case of direct write off method debts are written off only when the debts actually become irrecoverable. So there can be no manipulation.

3. TRUE

As per matching concept, expenses incurred to produce particular revenues should be matched with those revenue.

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