Lets talk about the differences between the Direct method of writing off receivables and the allowance method of writing them off. Why would you use one instead of the other.

Someone else - what kind of account is "allowance for doubtful accounts". Someone else - Tell us about aging of receivables. Why would we age them? Someone else - What method are we using when we estimate bad debts? Someone else - what are the two methods of estimating bad debts? Which is easier for you to remember and why? Someone else - If you were focusing on your income statement (matching expenses to revenues), which method of estimating would you use?