Respond to Ray discussion. Class, I would recommend using the allowance method for writing off uncollectible accounts to comply with generally accepted accounting principles (GAAP). This method aligns with the matching principle by estimating uncollectible accounts in the same period as sales, providing a clearer financial picture (Horngren et al., 2013). In contrast, the direct method only recognizes losses when an account is confirmed uncollectible, which can distort financial statements. To control the write-off process, I would implement several internal control procedures: establish a formal credit approval process, conduct periodic reviews of accounts receivable, and segregate duties to prevent fraud. This structure ensures that no single individual can control both the credit approval and the write-off processes. When estimating uncollectible accounts, three methods can be used: percentage of sales, percentage of receivables, and aging. The percentage of sales method estimates bad debts based on a fixed percentage of total sales, while the percentage of receivables applies a percentage to outstanding accounts. The aging method categorizes receivables by how long they've been outstanding, applying different percentages to reflect increasing default risk (Horngren et al., 2013). Each method offers unique insights into potential losses