how is a business write off accounted for under gaap 
generally accepted accounting principles gaap detail the accounting entries required for a write off the two most common business accounting methods for write offs include the direct write off method and the allowance method the entries used will usually vary depending on each individual scenario three of the most common scenarios for business write offs include unpaid bank loans unpaid receivables and losses on stored inventory the bottom lineunderstanding write offs and the difference between a tax write off and a write down can help you reduce taxable income and increase the accuracy of how you record a business financial situation learn about the write offs that apply to your situation and don t miss the chance to take advantage of them when they apply 