ng Title Subtitle 1. Explain the accounting constraint of materiality and how it affects how bad debts are recognized. 2. Why might a business prefer a note receivable to an account receivable? 3. Explain why writing off a bad debt against the Allowance for Doubtful Accounts does not reduce the estimated realizable value of a company's accounts receivable. 4. Why does the Bad Debts Expense account usually not have the same adjusted balance as the Allowance for Doubtful Accounts? 5. How do sellers benefit from allowing their customers to use credit cards