# Direct write-off method

> Direct write-off method — Charging a receivable to bad debt expense only when it is judged uncollectible, with no allowance. Not GAAP where expected credit losses are material; the federal tax rule works the same way (specific charge-off).

Source: https://lopifi.com/glossary/direct-write-off-method
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is direct write-off method?** In accounting, direct write-off method means charging a receivable to bad debt expense only when it is judged uncollectible, with no allowance. Not GAAP where expected credit losses are material; the federal tax rule works the same way (specific charge-off).

## Words this system refuses for it

- allowance method
- write-off alone

- **Category:** Receivables
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** bad-debt-expense, write-off, expense, credit