Under the allowance method, which entry writes off a specific uncollectible account?

• A. Debit Bad Debt Expense; Credit Accounts Receivable.
• B. Debit Cash; Credit Accounts Receivable.
• C. Debit Allowance for Doubtful Accounts; Credit Accounts Receivable.
• D. Debit Accounts Receivable; Credit Allowance for Doubtful Accounts.

Answer: (C)

Under the allowance method, uncollectible accounts are expected and recorded as a contra asset (Allowance for Doubtful Accounts). When a specific receivable is determined to be uncollectible, you remove it from the books by debiting the Allowance for Doubtful Accounts and crediting Accounts Receivable. This writes off the bad debt against the already-established allowance, so net accounts receivable and net income are not affected at that moment (the expense was recognized earlier in the estimation).

Debit Allowance for Doubtful Accounts; Credit Accounts Receivable is the correct entry because it reduces the receivable and lowers the allowance balance accordingly.

Why other options don’t fit: Debiting Bad Debt Expense would align with the direct write-off approach, not the allowance method, since the expense was already estimated earlier. Debiting Cash would imply cash was received, which isn’t the case when writing off. Debiting Accounts Receivable would increase AR, which is opposite of removing the uncollectible amount. Crediting Allowance for Doubtful Accounts alone wouldn’t properly reduce the actual receivable balance.