I'm asking about the difference between the direct write-off of a bad debt vs. the allowance method.
I know that under a bad debt expense, a specific invoice is being charged off against it, while under the allowance method only an estimate is being charged off.
I had two questions:
1. Besides the fact that the amount netted against receivables may vary accordingly, there is no other difference regarding effect on AR, correct?
Many Thanks
-- Edited by mindy on Thursday 16th of December 2021 12:45:32 PM