When using the allowance method of accounting for uncollectible accounts, the entry to record the estimated bad debts expense is a debit to Bad Debts Expense and a credit to Allowance for Doubtful Accounts.

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This is the correct entry for the allowance method of accounting for uncollectible accounts. The Bad Debts Expense account is debited to record the estimated amount of accounts receivable that are unlikely to be collected, and the Allowance for Doubtful Accounts is credited to reflect the estimated balance of uncollectible accounts at the end of the period.

When Using the Allowance Method of Accounting for Uncollectible Accounts