The ability to charge for an unpaid obligation because there is no possibility of collecting payment.
Related information about direct write off method:
- What is direct write off method? definition and meaning
Definition of direct write off method: One of the two accounting techniques for charging-off bad debts (the other is called allowance method). In this method, the ...
- Pledging, Selling, Direct Write Off | AccountingCoach.com
In the direct write-off method, a company will not use an allowance account to reduce its Accounts Receivable. Accounts Receivable is only reduced if and when ...
- Bad Debts Direct Write-off Method | Journal Entry | Receivables
In the direct write-off method, uncollectible accounts receivable are directly written off against income at the time when they are actually determined as bad ...
- What is the direct write off method? - Questions & Answers ...
Feb 23, 2011 ... The direct write off method is the practice of charging bad debts to expense in the period when individual invoices have been clearly identified ...
- Accounting Principles I: Evaluating Accounts Receivable
These uncollectible accounts are also called bad debts. Companies use two methods to account for bad debts: the direct write-off method and the allowance ...
- Definition of Direct Write-Off Method | Chegg.com
Definition of direct write-off method and related terms and ...
- Direct Write-Off Method: Definition from Answers.com
Way of charging bad debt expense when an account receivable is actually deemed uncollectible. Thus, at the date it is certain that the customer will not.
- direct write-off method - The Braff Group - A Health Care Mergers ...
The most common way to account for uncollectables is the direct write-off method , in which an uncollectable expense is recorded when it is actually determined.