For a company with significant uncollectible receivables, the direct write$-$off method is unsuitable because.

A$)$ companies are not able to track customer payment histories

B$)$ it overstates liabilities on the balance sheet

C$)$ it violates the matching principle

D$)$ it uses estimates for determining the bad debt expense

Two methods of estimating uncollectible receivables are

A$)$ the aging$-$of$-$accounts$-$receivable method and the percent$-$of$-$sales method

B$)$ the gross$-$up method and the direct write$-$off method

C$)$ the direct write$-$off method and the percent$-$of$-$completion method

D$)$ the allowance method and the amortization method

Historical Art is a new business. During its first year of operations, credit sales were $$50,000$ and collections on credit sales were $$34,000.$ One account of $$500$ was written off. Management uses the percent$-$of$-$sales method to account for bad debts expense and estimates $3\%$ of credit sales to be uncollectible. The ending balance of Allowance for Bad Debts account is

A$)$ $$1,000$

B$)$ $$2,505$

C$)$ $$1,500$

D$)$ $$465$