Two methods of accounting for uncollectible accounts are the

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The two methods of accounting for uncollectible accounts are the direct write-off method and the allowance method. The direct write-off method is when bad debt expenses are recorded when a debt is deemed uncollectible and written off. The allowance method is when a certain amount of the accounts receivable is estimated to be uncollectible and is recorded as an allowance for doubtful accounts. Of the given options, only option D includes both the direct write-off and allowance methods.

Two Methods of Accounting for Uncollectible Accounts Are the