Specific Charge-off Method
About Specific Charge-off Method:
Specific Charge-off Method (bad Debts) is the deduction of bad debt for an uncollectible account receivable at the time the specific receivable becomes worthless, after all possible methods of collection have been pursued. Accrual basis taxpayers must use this method, as they are no longer allowed to accrue reserves for bad debts. See also reserve method. Former IRC (check if this IRC provision is current here) §166.
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