Answer:
D. when an account is determined to be worthless
Explanation:
Under the direct methd for uncollectibles amount, the bad debt expense is recognize at the same as the write-off of the receivable account:
bad debt expense debit
account receivable credit
This method take heavy critis from the accountants as, violates the accounting principle of matching the expenses and revenues in the period they occur. Under direct method the company is recognizing an expense (bad debt) for a sale that could occur several periods ago,
