How does the direct write-off method differ from the allowance method?

• A. The direct write-off method records bad debt expense when an account is deemed uncollectible, while the allowance method estimates bad debts in advance.
• B. The direct write-off method requires an allowance account, while the allowance method does not.
• C. The direct write-off method is GAAP-compliant, while the allowance method is not.
• D. The direct write-off method is more accurate than the allowance method.

Answer: (A)