The allowance method of accounting for bad debts has the following advantages over the direct write-off method including:. A. Records estimated bad debts expense in the period when the related sales are recorded.
B. Records estimated bad debts expense when the account receivable is determined to be uncollectible.
C. Reports accounts receivable on the balance sheet at the estimated amount of cash to be collected
D. Reports sales on the income statement at the estimated amount of cash to be collected