When a specific account receivable is written off as uncollectible under the direct write off method, it decreases the Allowance for Doubtful Accounts.

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Under the direct write-off method, the specific account receivable is directly written off against income by debiting Bad Debt Expense and crediting Accounts Receivable, without affecting the Allowance for Doubtful Accounts.

When a Specific Account Receivable Is Written Off as Uncollectible