direct charge-off method

direct charge-off method definition - finance
An accounting method for uncollectible accounts that directly debits, or charges, an expense account when a bad debt is discovered. Contrasts with the allowance method, which accounts for uncollectible accounts by expensing estimates of uncollectible accounts in the period when the related sales take place.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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