The straight line method charges a constant depreciation expense each period throughout the useful life of the asset. The depreciation expense per period under the straight line method is calculated as follows,
Depreciation expense = (Cost - Residual value) / Useful life of the asset
The direct write-off method is an accounting method for recognizing bad debts expense arising from credit sales when individual invoices has been identified as uncollectible.
In Accounting, one of the weaknesses of the direct write-off method is that it violates the matching principle.
The direct write-off method is a method of accounting for uncollectible receivables.
