You're a bookkeeper for a small company that sells office supplies. You use the direct write$-$off method to account for

uncollectible accounts. At the end of the year, you review the accounts receivable ledger and identify three customers

who have not paid their invoices for more than six months. The total amount of these invoices is $$1,500.$ You discuss the

accounts with the business owner and together decide to write off these accounts as bad debts.

Question: Which of the following statements are true regarding the direct write$-$off method and the scenario above?

$($Select all that apply and then select SUBMIT.$)$

The direct write$-$off method is required for income tax purposes because it recognizes bad debts only when specific accounts are

uncollectible.

The direct write$-$off method involves debiting the bad debts expense account and crediting the accounts receivable account for

the amount of the uncollectible accounts.

The direct write$-$off method is the preferred method for financial accounting purposes because it matches the bad debts expense

with the revenue in the same period.

The direct write$-$off method affects the net realizable value of accounts receivable but not the gross amount of accounts

receivable.