1. In dealing with receivables, what do the terms factoring and discounting mean? 2. How does a credit scoring system work? 3. How do the allowance method and the direct write-off method of handling credit losses differ with respect to the timing of bad debts expense recognition? Accounts credited rather than Accounts Receivable? method is employed? Describe them. 4. When a firm provides for credit losses under the allowance method, why is the Allowance for Doubtful