What are the essential features of the allowance method of accounting for bad debts?

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Financial Accounting Tools for business decision making

ISBN: 978-0470534779

6th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Question Posted: Sep 22, 2011 08:48 AM

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Why is the allowance method of accounting for bad debts more consistent with accounting standards than the direct write-off method? Under what circumstances is the direct write-off method acceptable?
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What are the essential features of the allowance method of accounting for bad debts?

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