Indicate whether each statement best describes the allowance method or the direct write-off method. List Method 1. Does not estimate an allowance for doubtful accounts. 2. When an account is written off the debit is to Bad Debts Expense. 3. Does not predict bad debts expense. 4. Accounts receivable on the balance sheet is reported at net realizable value 5. Estimates bad debts expense related to the sales recorded in that period. 6. Matches the estimated loss from uncollectible accounts receivable against the sales they helped create