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Uncollectible Accounts those accounts receivable that cannot be collected Direct-Write Off Method the uncollectible amount is removed from the accounts receivable subsidiary ledger and the controlling account in the general ledger when the business determines that the amount owed is not going to be paid Allowance Method matches potential bad debts expense with sales made during the same fiscal period Allowance for Uncollectible Accounts used to summarize the estimated uncollectible accounts receivable of the business Book Value of Accounts Receivable amount the business can reasonably expect to receive from all its charged customers Percentage of Net Sales Method certain percentage that a business assumes of each year's net sales will be uncollectible Aging of Accounts Receivable Method Each customer's account is examined and "aged" or classified according to its due date