When you sell merchandise or services on credit, there is always a possibility that some customers might not pay! As a result of this, a company must recognize bad debt expense. There are basically two methods of recognizing bad debt expense: (1) direct write-off method and (2) allowance method.Can you alldescribe (1) the direct write-off method and (2) the allowance method of recognizing bad debt expense, anddiscuss the reasons why one of the above two methods is preferable to the other?