There are two methods of accounting for uncollectible accounts: the direct write-off method and the allowance method.

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This is true. The direct write-off method records bad debt expense only when a customer's account is deemed uncollectible and the specific account is written off. The allowance method records bad debt expense based on an estimated percentage of the total accounts receivable, creating an allowance for doubtful accounts.

There Are Two Methods of Accounting for Uncollectible Accounts: the Direct