The direct charge-off method is an accounting technique used to write off specific bad debts when they are deemed uncollectible.
A nonrecurring charge is a one-time expense or write-off that appears in a company's financial statement. It is also called an extraordinary charge. This term includes unexpected events such as natural disasters, strategic business decisions like closing a division, or changes in accounting procedures.
An uncollectible account is a customer account that cannot be collected due to the customer's unwillingness or inability to pay. Such accounts may be written off as worthless after several collection attempts, although further collection efforts may continue.
The act of reducing the value of an asset or a debt to zero in a balance sheet, often due to obsolescence, expiration, or uncollectibility.
