There are two methods for accounting for uncollectible accounts receivable, direct write-off and the allowance method

There are two methods for accounting for uncollectible accounts receivable, direct write-off and the allowance method. Under the allowance method, the write-off of a specific accounts receivable: Please add checkmark next to the correct answer(s); 1 decreases net income and decreases accounts receivable. 2 decreases net income and decreases working capital. 3 affects neither net income nor accounts receivable. 4 affects neither net income nor working capital. 5 increases bad debt expense and increases the allowance for doubtful accounts.