please help

SUBMIT Allister Company does not use the allowance method to account for bad debts and instead any bad debts that do arise are written off as bad debt expense. What problem might this create if bad debts are material? Multiple Choice Receivables likely will be understated. No problems are created Receivables likely will be overstated The matching principle is violated when the write-off occurs in the same period that the receivable is initially recorded Allocation of the transaction price to performance obligations: Multiple Choice is based on relative standalone selling prices. Cannot be based on estimated selling prices. May not use the residual method when selling prices are uncertain Is not allowed when bad debts are material