The advantage of the allowance method of accounting for uncollectible accounts is that it identifies the specific customers who do not pay their bills.

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The allowance method of accounting for uncollectible accounts does not identify specific customers who do not pay their bills, but rather estimates a percentage of total accounts receivable that will be uncollectible and creates an allowance for that amount. Individual customer accounts are not specifically identified as uncollectible until they are actually determined to be so.

The Advantage of the Allowance Method of Accounting for Uncollectible