Saved The following list describes aspects of either the allowance method or the direct write-offf method to account for bad debts. For each item listed, indicate if the statement best describes either the allowance method or the direct write-off method. List Method 1 May be used when bad debts expense is very small in relation to a company's sales and net income. 2 The write-off of a specific account does affect net income The loss from an uncollectible account receivable is written off if and when the account is determined to be 3. uncollectible. 4 Bad debts expense is recorded in the period in which the related sales occur 5 An adjusting entry is generally required during each period. 6 When an account is written off the debit is to a contra asset account