Chapter 9, Problem 2QC

Which of the following is a limitation of the direct write-off method of accounting for uncollectibles?

Learning Objective 2

1. The direct write-off method overstates assets on the balance sheet.
2. The direct write-off method does not match expenses against revenue very well.
3. The direct write-off method does not set up an allowance for uncollectibles.
4. All the above