Knowledge Check 01 The allowance method of accounting for bad debts has the following advantages over the direct write-off method including: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ek 3 Records estimated bad debts expense in the period when the related sales are recorded nces Records estimated bad debts expense when the account receivable is determined to be uncollectible. Reports accounts receivable on the balance sheet at the estimated amount of cash to be collected Reports sales on the income statement at the estimated amount of cash to be collected