Question: 1)Why is the allowance method preferred over the direct write-off method of accounting for uncollectible accounts? 2)When the allowance method is used, how is the

1)Why is the allowance method preferred over the direct write-off method of accounting for uncollectible accounts?

2)When the allowance method is used, how is the expense of bad debts (estimated uncollectible accounts receivable) recorded?

3)What two general approaches to estimating bad debts are used?

4)What kind of account is "Allowance for Doubtful Accounts"?Where is it reported in the financial statements?

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