J-Pac Co. uses the Allowance Method to account for uncollectible Accounts Receivable. They are informed that Perry Stark, a customer who owes them $4,000 is bankrupt. Stark pays them $1,000, and the remainder must be written off - the correct entry to record this would be: Debit Cash for $1,000, debit Bad Debt Expense for $3,000 and credit Accounts Receivable for $4,000. Debit Cash for $1,000, debit Allowance for Doubtful Accounts for $3,000 and credit Accounts Receivable for $4,000. Debit Cash for $4,000 and credit Accounts Receivable for $4,000. Debit Allowance for Doubtful Accounts and credit Accounts Receivable for $4,000