The allowance method for uncollectible accounts receivable is similar to the allowance method for estimated warranty costs because

Estimates of future events are made and the cost to the business is charged to income in the period of sale

None of the other alternatives are correct

The expense is debited directly to Retained Earnings and does not appear on the income statement

All the three statements about allowances are correct

Both the Allowance for Uncollectible Accounts and the Allowance for Warranties are liability accountsthis answer is wrong