Under the direct write-off method,recording an estimate of future uncollectible accounts includes a debit to Bad Debt Expense and a credit to the Allowance for Uncollectible Accounts.Under the direct write-off method,future uncollectible accounts are not estimated.

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Under the direct write-off method, future uncollectible accounts are not estimated, but actual uncollectible accounts are written off when identified. Therefore, there is no allowance for uncollectible accounts under this method, and the entire amount of uncollectible accounts is charged to Bad Debt Expense when written off.

Under the Direct Write-Off Method,recording an Estimate of Future Uncollectible