Sosu Aztecs doesn't use the allowance method when determining bad debts. but simply writes off any bad debts as they oceur is this a problem if the bad debts are large and material for the company? Muluple Cholce Receivables wil most likely be overstated No problems are created. Recevables will most likely be understated The matching principle is violated if the write- off takes place in the same penod as the recording of the recevabie