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c. What appeailtu d If the provision for uncollectibles Explain Notes to the Year 4 annual report of Tyrex Oil Company, located in Casper Comparing Atenative Methods of Recording and Reporting Bad Dets LO4,7 Bad Debts-The direct wnite-off method of accounting for uncollectible accounts whereby an account is written off only when determined to be uncollectible. The not vary materially from the preferred method receivable is utilized ob ollectible. The results of this method do Notes to the Year 4 ameual report of Wyoming Oil and Minerals Inc, which engages principally in the tion, development, and production of oil and gas, included the following. The Company uses the direct wate-off method for bad debts which expenses uncollectible accounts in the year they become uncollecaible Any dfference between this method and the allowance method is not material. The Year 4 balance sheet of Sd Systems Inc.,.a govenment contracting firm, included the following. June 30 Year 4 Year 3 Accounts receivable, net of $4,267,000 allowance in Year 4 and $4,600,000 n Year 3 $247,004,000 $201,919,000 Neitherits income satcemert nor is statement of cash flows listed bad debt expense. Its notes included the fol Income tax expense differs from amounts currently payable, as certain revenues and expenses are reported in periods which diffter from those in which they are taxed. The prindipal diterences are that for income tax purpos- s: (a) income trom cenain long-farm conteracts is reported in accordance with income tax regulations; (b) accel- erated depreciation of certain fxed assets is used, (c) the direct write-oft method for doubtful accounts is used