Under the allowance method for uncollectible accounts, the entry to write off an uncollectible account only involves statement of financial position accounts.

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The allowance method requires two types of accounts - a contra asset account (allowance for doubtful accounts) and an expense account (bad debt expense) - in addition to the statement of financial position accounts. When an uncollectible account is written off, both the allowance account and the accounts receivable account are adjusted, reducing the amount of receivables and the allowance for doubtful accounts by the same amount.

Under the Allowance Method for Uncollectible Accounts, the Entry to Write