A purchaser may acquire better title than the seller had

On January 1, A Plus Services has the following balances

Accounts Receivable $25,000 (debit) Bad Debts Expense $0 A Plus Services has the following transactions during January: Credit sales of $140,000, collections of credit sales of $90,000, and write-offs of $16,000. A Plus Services uses the direct write-off method. At the end of January, the balance of Accounts Receivable is ________. A) $10,286 B) $59,000 C) $24,889 D) $75,000

For a company with significant uncollectible receivables, the direct write-off method is unsuitable because ________

A) it overstates liabilities on the balance sheet B) it violates the matching principle C) it uses estimates for determining the bad debt expense D) companies are not able to track customer payment histories