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

The direct write-off method records bad debt when uncollectible, while allowance estimates in advance.

The direct write-off method requires an allowance account, while the allowance method does not use one.

The direct write-off method is GAAP-compliant, while the allowance method is not acceptable for public companies.

The direct write-off method is more accurate and reliable than the allowance method for reporting.