Cleanworks Services Pty Ltd is a provider of commercial cleaning services for commercial venues such as offices and bars. Commercial businesses throughout Australia engage Cleanworks Services for their daily and weekly cleaning needs including big clean ups related to corporate events and functions. These businesses also purchases cleaning products such as trash supplies, bar towels and even sanitation kits.

The COVID-19 pandemic has hit offices and bars particularly hard, with lock downs forcing the closures of offices and bars across different states in Australia. For Cleanworks Service, this has meant that clients have cut back requesting cleaning services as much as possible (especially with remote working). Many clients are experiencing great financial difficulty and have delayed paying amounts owed to Cleanworks Services. In the context of this case, please answer the following questions:

(1) In prior periods, Cleanworks Services used the direct write off method to account for bad debts. Cleanworks Services historically had a stable and regular client base and management did not continue to service clients who did not pay invoices due.

Briefly explain what the direct write off method of accounting for bad debts is and with reference to one qualitative characteristic why the direct write off method was deemed appropriate prior to the COVID-19 pandemic and why it is unlikely to be appropriate since the pandemic.