Which of the following best explains why not every purchase made on credit appears immediately on a company's account statement when using the direct write-off method for accounts receivable?

Consider the implications of uncollectible accounts: The direct write-off method does not anticipate bad debts at the time of sale. Instead, it waits until there is evidence that a specific account will not be collected before recording it as an expense.

Evaluate the incorrect options: The statement 'Purchases are only recorded if the customer pays in cash at the time of sale' is incorrect because credit sales are recorded as accounts receivable. The statement 'The direct write-off method requires that all purchases be recorded as expenses, not as receivables' is incorrect because receivables are recorded first, and only uncollectible amounts are expensed later. The statement 'All purchases are immediately written off as bad debt' is incorrect because only uncollectible accounts are written off, not all purchases.