Direct Write-Off

(noun)

Bad debts are recognized only after the company is certain the debt will not be paid.

Related Terms

Examples of Direct Write-Off in the following topics:

  • Valuing Notes Receivable

    • Companies have two methods available to them for measuring the net value of accounts receivable: the allowance method and the direct write-off method.
    • Companies have two methods available to them for measuring the net value of accounts receivable--the allowance method and the direct write-off method.
    • The second method is the direct write off method.
    • Differentiate between the allowance method and the write off method for valuing notes receivable

  • Valuing Accounts Receivable

    • Companies use two methods to account for bad debts: the direct write-off method and the allowance method.
    • For tax purposes, companies must use the direct write-off method, under which bad debts are recognized only after the company is certain the debt will not be paid.
    • Smith fails to pay a $100 balance, for example, the company records the write-off by debiting bad debts expense and crediting accounts receivable from J.
    • Differentiate between the direct write-off method and the allowance method of accounts receivable valuation

  • Write-Offs

    • Companies use two methods for handling uncollectible accounts: the allowance method and the direct write-off method.
    • Companies use two methods for handling uncollectible accounts: the direct write-off method and the allowance method.
    • The direct write-off method is simpler than the allowance method in that it allows for one simple entry to reduce accounts receivable to its net realizable value.
    • The entry to write off this account is:
    • Explain how to write off an uncollectible account using both the direct write-off and the allowance method.

  • Recognizing Notes Receivable

    • When the customer pays off their accounts, one debits cash and credits the receivable in the journal entry.
    • The two methods are not mutually exclusive, and some businesses will have a provision for doubtful debts, writing off specific debts that they know to be bad (for example, if the debtor has gone into liquidation. )
    • Describe the difference between using the allowance method vs. the write off method when recording a note receivable

  • Resource Cost Write-Off

    • The term write-off describes removing an asset whose value is zero and is no longer in use from the balance sheet.
    • The term write-off describes a reduction in recognized value.
    • Asset write-offs should not be confused with impairment.
    • A write-off journal entry removes an asset not in use and its related contra account (accumulated depletion) from the balance sheet.
    • An asset write-off removes an asset's cost off the balance sheet and expenses it on the income statement.

  • Appropriate Language

    • Academic writing should be more formal than personal writing.
    • The goal is formal writing, not extravagant and flowery writing.
    • Jargon-heavy: The patient lost distal and radia CMS on lower left foot after the direct impact trauma, but otherwise is AOx4.
    • The reason we want to avoid using clichés in academic writing is that they tend to be ambiguous and can come off as overly colloquial and informal.
    • Avoiding pretentious writing and defining any technical jargon will endow your writing with a clarity that readers will appreciate.

  • Introduction to Writing in Business

    • Business writing has changed a great deal since the days of typed memos and reports.
    • Different types of business writing require different patterns of organization.
    • Depending on whether you want to simply inform, convey good news, make a direct request, convey bad news, or persuade your audience of something, you might choose from any of the following organizational structures:
    • Direct and to the point; starts right away with a problem or request
    • For example, you might submit a proposal to your direct supervisor (your primary audience), who in turn may pass it on to his or her supervisor, a task force or committee, or some other secondary audience.

  • Problems

    • The particle bounces off of the mirror.
    • The particle bounces off of the mirror.
    • Write out the Lorentz transformation matrix for a boost in the x−direction to a velocity $\beta _x$.
    • Write out the Lorentz transformation matrix for a boost in the y−direction to a velocity$\beta_y$.
    • Write out the Lorentz transformation matrix for a boost in the x−direction to velocity $\beta_x$ followed by boost to a velocity $\beta_y$ in the y−direction.

  • Tone

    • After writing thousands of messages, you will probably find your style tending toward the terse.
    • No greeting, no sign-off other than his name, and the message itself is just a series of questions phrased as compactly as possible.
    • But at the end, sign off with something indicating that your terseness is not to be taken as coldness.
    • To be more precise, they are often willing to express emotions directed at others, such as gratitude or outrage, but not emotions directed inwardly, such as insecurity or pride.
    • And by being sensitive to the tone of your own writing, you can have a surprising amount of influence over how others feel, to the ultimate benefit of the project.

  • Ending Punctuation

    • replaces a period at the end of a sentence that asks a direct question.
    • Question marks come at the end of sentences that make a request or ask a direct question.
    • Declarative sentences sometimes contain direct questions.
    • (declarative sentence with a direct question)
    • He yelled, “Stay off the grass!”