A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time past due is the:

Question $22$ options:

$1)$

Direct write$-$off method.

$2)$

Aging of accounts receivable method.

$3)$

Percent of sales method.

$4)$

Aging of investments method.

$5)$

Percent of accounts receivable method.