The preferred method of accounting for uncollectible accounts is the: actual method. . net realizable method. direct write-off method and the net realizable method. allowance method. m On March 1, Ron took out a $100,000, 12%, 1 year loan from Stunda Bank. What entry would Stunda Bank make on March 1; and what adjusting entry would Stunda bank make on March 31? Bad Debt Expense is reported on the income statement as part of cost of goods sold. reducing gross profit. an operating expense. a contra-revenue account. The Allowance for Doubtful Accounts is a liability account. a. True b. False c. Neither