The following list describes aspects of either the allowance method or the direct write-off 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 Sales and any bad debts expense are usually not recorded in the same period thus proper matching often does not take place. Accounts receivable on the balance sheet is reported at net realizable value. 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 uncollectible. Matches the estimated loss from accounts receivable against the related sales. An adjusting entry is generally required during each period