Direct Write-off Method

1. Under the direct write-off method of accounting for bad debts, an account receivable is written off and a bad debt is recognized when the account becomes uncollectible. The direct write-off method is not GAAP because it does not properly match the bad debt expense with the sales revenue that generated it. See also allowance method. A method of accounting for bad debts in which they are expensed in the period in which they are identified as uncollectible.