Under the allowance method, if bad debt write-offs during the year exceed the allowance amount,

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If bad debt write-offs during the year exceed the allowance amount, it means that the allowance was not sufficient to cover the actual bad debt expense. Therefore, the company will need to increase its allowance by debiting expense and creating a new allowance. This will result in a debit entry to the allowance account.

Under the Allowance Method, If Bad Debt Write-Offs During the Year