Watch A. Mursau’s video titled Accounts Receivable Bad Debt Expense (Direct Write Off Method Vs Allowance Method)”:
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Based on the information in the video, discuss the primary advantages and disadvantages of applying the direct write-off over the allowance method of writing off accounts. Take a position on whether or not estimating the allowance for doubtful accounts provides the opportunity to distorts gross income.
- Provide support for your rationale.
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