Q-7-4 Writeoff an Uncollectible Accounts Receivable There are two methods for accounting for uncollectible accounts receivable, direct write-off and the allowance method. Under the allowance method, the write-off of a specific accounts receivable: Please add checkmark next to the correct answer(s) 1 2 3 decreases net income and decreases accounts receivable. decreases net income and decreases working capital. affects neither net income nor accounts receivable. 4 O affects neither net income nor working capital 5 increases bad debt expense and increases the allowance for doubtful accounts.