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

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Under the allowance method, bad debts expense is estimated at the end of each period, but under the direct write-off method, bad debts are only recognized when specific accounts are deemed uncollectible.

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