143.Describe the differences in how the direct write-off method and the allowance method are applied in accounting for uncollectible accounts receivables. 144.The allowance method of...

143.Describe the differences in how the direct write-off method and the allowance method are applied in accounting for uncollectible accounts receivables.

144.The allowance method of accounting for bad debts requires an estimate of bad debt expense at the end of each accounting period. The two common methods to determine the estimate amount are the percent of sales method and the percent of receivables method. Explain the basic differences between the two methods.