The direct write-off method of accounting for uncollectible accounts is

The direct write-off method is one way of  accounting for bad debts. Bad debts are only accounted for when they are determined to be uncollectible. In other words a Business will only report the bad debt expense and reduce it's accounts receivable when it is proven beyond reasonable doubt that it can no longer be collected.

Because the direct write-off method often records bad debt in a in a different period from that in which the related was recorded. It therefore usually fails to match expenses with revenues.

The direct write-off method does not require audited financial statements and  is used to record uncollectible accounts by many small businesses.

When the amount of accounts receivable is not significant to the financial statements bigger corporations also use this method. It prevents those who will use the financials form being misled by the amount of money reported under accounts receivable.

One problem with this method is that receivables are often recorded at their full amount, instead of the amount a business expects to collect from those receivables.

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answer; post closing trial balance;

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.