To use the allowance for doubtful debts to write off an accounts receivable. Heres an example. Writing Off An Account Under The Allowance Method Accountingcoach Provision for Doubtful debt xxx Once it is certain that the debt has. . Using the percentage of sales method they estimated that 1 of. If the allowance has a current balance of 1 million you will need to make the following journal entry. Accounting entry to record the bad debt will be. Lets take a look at the. As stated above a doubtful debt is an amount owed by a customer that the business believes might prove. So when a company estimates they will have 15000 in bad debt they debit bad debt expense on the balance sheet and credit the allowance for doubtful accounts. Basic double entry for doubtful debts. The double entry for recording provision for doubtful debt is. Provision for doubtful accounts. Doubtful Debts PL expense ac xxx...