You have just received notice that a customer of yours with an account receivable balance of $100 has gone bankrupt and will not make any future payments. Assuming you use the allowance method, the entry you make is to O debit Allowance for Doubtful Accounts and credit Bad Debt Expense. O debit Allowance for Doubtful Accounts and credit Accounts Receivable. O debit Bad Debt Expense and credit Accounts Receivable. debit Bad Debt Expense and credit Allowance for Doubtful Accounts