When using the direct write-off method of accounting for uncollectible receivables, the account Allowance for Doubtful Accounts is debited when a specific account is determined to be uncollectible.

Direct Write-off

A method for recognizing bad debts, where uncollectible accounts receivable are directly written off against income at the time they are deemed noncollectible.

Allowance for Doubtful Accounts

A financial accounting provision estimating the portion of accounts receivable that may not be collectible.

Uncollectible

Refers to accounts receivable that are unlikely to be recovered and are therefore considered as bad debt.