Answer:
debit to Bad Debts Expense and credit to Allowance for Doubtful Accounts
Step-by-step explanation:
The journal entry needed to record the adjusting entry by using the allowance method is given below:
Bad debt expense
To Allowance for doubtful debts
(Being bad debt expense is recorded)
Here the bad debt expense is debited as it increased the expense and credit the allowance as it decreased the assets