Under both the allowance method and the direct-write off method of accounting for uncollectible accounts,the amount of bad debts expense is estimated at the end of each accounting period.

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Under the allowance method, the amount of bad debts expense is estimated at the end of each accounting period. However, under the direct write-off method, bad debts expense is not estimated but rather recognized when an account is deemed uncollectible and is directly written off at that time.

Under Both the Allowance Method and the Direct-Write Off Method