If a company uses the allowance method to account for uncollectible accounts the entry to write off an uncollectible account only involves balance sheet accounts.

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The allowance method involves setting up a contra asset account, called the Allowance for Doubtful Accounts, on the balance sheet to estimate and account for uncollectible accounts. When an account is deemed uncollectible and needs to be written off, the allowance account is debited and the accounts receivable account is credited, both of which are balance sheet accounts. Therefore, the entry to write off an uncollectible account only involves balance sheet accounts.

If a Company Uses the Allowance Method to Account for Uncollectible