QS 7-4 (Algo) Distinguishing between allowance method and direct write-off method LO P1, P2 Indicate whether each statement best describes the allowance method or the direct write-off method. List 1. When an account is written off, debit Allowance for Doubtful Accounts. 2. Matches the estimated loss from uncollectible accounts receivable against the sales they helped create. 3. When an account is written off, the debit is to Bad Debts Expense. 4. Does not predict bad debts expense. 5. Accounts receivable on the balance sheet is reported at net realizable value. 6. The write-off of a specific account does not affect net income. Method