Question 1 The correct entry to write off a $400 receivable owed by Ajax Co. using the Direct Write-off Method would be: O Debit Allowance for Doubtful Accounts and credit Bad Debt Expense for $400. Debit Bad Debt Expense and credit Accounts Receivable - Ajax Co. for $400. Debit Accounts Receivable - Ajax Co. and credit Allowance for Doubtful Accounts for $400. Debit Allowance for Doubtful Accounts and credit Accounts Receivable - Ajax Co