LMU Benefits to Write Balance Sheet and Income Statement Presentation Discussion

I’m trying to learn for my Business class and I’m stuck. Can you help?
 
Corporations are required to use the allowance method when accounting for bad debts. This necessitates the following entry at the start of the fiscal year:
Uncollectible accounts expense
Allowance for uncollectible accounts
Explain the benefits gained from this entry in terms of Balance Sheet and Income Statement presentation for the corporation and its investors.