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Here, we will focus on Allowance Method VS Direct Write Off Method . 1. Under Allowance Approach, we estimate for Uncollectible Accounts and adjusting the actual sales with estimated sales at the End of Current Accounting Period in order to know the exact real sales made by business while under Direct Write Off Method, we does not follow any estimation of Unpaid dues and only recognize these  Uncollectible Accounts Expense when these become Actual Bad Debts that needed to be Written Off. 2. Allowance Method follows Matching Principle Gaap i.e., matching our sales with Uncollectible Accounts Expense during the Current Accounting Cycle while Direct Off Method fails to follow Matching Principle as there is no record of estimation of Uncollectible Accounts Expense. 3. Allowance Method is widely used by most of the companies where goods sold on both Cash Basis and Accrual Basis of Accounting while Direct Write Off Method is used by those...