Answer:
B. is often used by small companies and companies with few receivables
Explanation:
As there is no a high amount of customer accounts, and the business is small the distorsions generates by the direct method are not as high as in a large business
D false. the direct method violates the matching principles as the bad debt expense is associate with a revenue of a prior period.
A and C false. the direct method do not calcualte any allowance, therefore it do not emphasizes any method of receivables metric.
