This kind of method, direct write-off method is referring to your question and it is considering a method that is used for recognizing bad debts expenses that are coming from credit sales of someone's account. With this method there is no account that is considering allowance and receivable that is found on someones's account is written-off directly to expense when there is uncollectible account expense.
One of the greatest advantages is simplicity because those companies who are doing this method have to make only two transactions.
The resource based approach says organizations should look inside their company for sources of improvement and competitive advantage rather than looking outside to their environment (such as their industry).
