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Why does the direct write-off method of accounting for bad debts usually fail to match revenues and expenses?
Hanshadiranto
Direct write-off normally does not match because the revenue from the sales was reported in an earlier period. It affects the revenues and expenses in the period it is written off in. If a company has many credit sales then it would be better to instead estimate an allowance for uncollectible credit accounts. That way the revenues and expenses are affected in each period and the sales numbers will represent the business' sales more accurately; provided the percentage is watched and adjusted as needed.
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Why did monarch people usually support commerce?
tax trade to increase thier revenues
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Is total expenses a liability?
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