When comparing the direct write-off method and the allowance method of accounting for uncollectible receivables, a major difference is that the direct write-off method a. uses a percentage of sales method to estimate uncollectible accounts. b. is used primarily by large companies with many receivables. c. is used primarily by small companies with few receivables. d. uses an allowance account.

A. uses a percentage of sales method to estimate uncollectible accounts

Explanation:

Difference between the direct write-off and the allowance method for accounting for bad debts are the timing of when bad debts are reported on the books and their ultimate impact on the income statement and balance sheet

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%