At a Glance 9 Describe the common classes of receivables. Describe the accounting for uncollectible receivables. The operating expense recorded from uncollectible receivable is called bad debt expense. The two methods of accounting fo uncollectible receivables are the direct write-off method and the allowance method. Describe the direct write-off method of accounting for uncollectible receivables. Under the direct write-off method, the entry to write off an account debits Bad Debe Expense and credits Accounts Receivable. Neither an allowance account nor an adjusting entry is needed at the end of the period