The following data were associated with the accounts receivable and uncollectible accounts of Hilton, Inc., during 2000:

a. The opening credit balance in Allowance for Bad Debts was $\$ 900,000$ at January 1,2000 .

b. During 2000 , the company realized that specific accounts receivable totaling $\$ 920,000$ had gone bad and had been written off.

c. An account receivable of $\$ 50,000$ was collected during 2000 . This account had previously been written off as a bad debt in 1999.

d. The company decided that Allowance for Bad Debts would be $\$ 920,000$ at the end of 2000 .

1. Prepare journal entries to show how these events would be recognized in the accounting system using:

a. The direct write-off method

b. The allowance method.

2. Discuss the advantages and disadvantages of each method with respect to the matching principle.