Writing off accounts receivable using the allowance method Difference between the allowance method and the direct write- off method Allowance method: method of accounting for uncollectible accountsthat provides an expense for uncollectible receivables in advance on their write offs Direct write-off method: method of accounting for uncollectible accounts that recognizes the expense only when accounts are judged to be worthless Effect on the accounting equation of adjustments to the allowance account and write-offs of receivables