Obama company has identified that bill clintonâs receivable account of $100 is uncollectible. What is the journal entry needed to write off the account under the allowance method?

The journal entry required to write off the account under the allowance method is Bad Debt Written Off.      

Explanation:

Accounts uncollectible are receivables, loans, or other debts that have virtually no chance of being paid. An account may become uncollectible for many reasons, including the debtor's bankruptcy, an inability to find the debtor, fraud on the part of the debtor, or lack of proper documentation to prove that debt exists.

So the next right steps would be to Debit Allowance for Doubtful Debts account and Credit Accounts Receivable for Bill Clinton.    

Cheers!

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