it-Ch's. 4,5,67 6 The following list describes aspects of either the allowance method or the direct wite-off method to account for bad debts. For eact tem listed, indicate if the statement best describes either the allowance method or the direct write-off method 1. Acoounts recelvable on the balance sheet is reported at not realizable value. 2. The wrte-off of specific account does not affect net inoome. 3. May be used when bad debts expense is very small in relation to a company's sales and net income. 4 The write-off of a specific account does affect net income The loss from an uncollectible account receivable is witen off and when the account is Getermined to be Matches the estimated loss from unoollecible accounts receivable against the related sales stt Nht