The method of accounting for bad debts that recognizes an expense at the time specific customers' accounts are "written off" is the "allowance method."

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The method described is the "direct write-off method." The "allowance method" involves estimating uncollectible accounts at the end of each period and recognizing an expense then, before specific accounts are actually written off.

The Method of Accounting for Bad Debts That Recognizes an Expense