Indicate whether each statement best describes the allowance method or the direct write-off method. Method 2. List 1. Does not estimate an allowance for doubtful accounts. Usually does not best match sales and expenses because bad debts expense is not recorded until an 2 account becomes uncollectible, which usually occurs in a period after the credit sale. 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. When an account is written off, the debit is to Bad Debts Expense. Allowance Direct write-off