Which of the following is an accounting method that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded,and (2) reports accounts receivable at the estimated amount of cash to be collected?

A) Allowance method of accounting for bad debts.
B) Aging of notes receivable method.
C) Adjustment method for uncollectible debts.
D) Direct write-off method of accounting for bad debts.
E) Cash basis method of accounting for bad debts.

The allowance method of accounting for bad debts is the only method listed that matches the given description, which is to estimate and report bad debts expense and report accounts receivable at the estimated amount of cash to be collected. The aging of notes receivable method is used to estimate the collectibility of outstanding notes receivable, while the adjustment method for uncollectible debts is not a recognized accounting method. The direct write-off method of accounting for bad debts does not estimate bad debts expense, but rather writes off uncollectible accounts directly as they are identified. The cash basis method of accounting for bad debts does not match the given description as it only records bad debt expense when cash is received.