Which of the following assets does not decline in service potential over the course of its useful life? land office equipment computers furnishings You have just received notice that a customer with an Accounts Receivable balance of $500 has gone bankrupt and will not make any future payments. Assuming you use the allowance method for uncollectible accounts, the entry you make is to debit Allowance for Doubtful Accounts and credit Bad Debts Expense. debit Bad Debts Expense and credit Accounts Receivable. debit Allowance for Doubtful Accounts and credit Accounts Receivable. debit Bad Debts Experise and credit Allowance for Doubtful Accounts. Recording transactions that affect a company's financial statements in the periods in which they occur rather than when cash is received or paid is called monetary accounting. the cash basis of accounting, time period accounting. the accrual basis of accounting