The preferred method of accounting for uncollectible accounts is the:

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The allowance method is the preferred method for accounting for uncollectible accounts as it provides a more accurate representation of accounts receivable on the balance sheet. The actual method is not commonly used as it requires extensive record-keeping and is not practical for most businesses. The direct write-off method only recognizes bad debt expense when an account is determined to be uncollectible, which can result in significant fluctuations in the financial statements. The net realizable method is not a method of accounting for uncollectible accounts, but rather a way to report accounts receivable on the balance sheet.

The Preferred Method of Accounting for Uncollectible Accounts Is The