Question: Accounting for accounts receivable - how does the allowance method work? How do we determine the adjustment and how do we then write off accounts

Accounting for accounts receivable - how does the allowance method work? How do we determine the adjustment and how do we then write off accounts during the next year? Why do we use the allowance method rather than the direct write off method we use in tax? What are the impacts on the financial statements as we account for bad debts using the allowance method

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