The two methods of accounting for bad debts are the direct write-off method and the allowance method. When comparing the two, which of the following is true?

• The direct write-off method requires two separate entries to write off an uncollectible account
• The direct write-off method is theoretically superior
• The direct write-off method is exact and also better illustrates the matching principle
• The allowance method is less exact but it better illustrates the matching principle