Using the allowance method for bad debts, the end of the period adjusting entry for estimated bad debts is: Debit Accounts Receivable and credit Alowance for Doubtful Accounts. Debit Allowance for Doubtul Accounts and credit Bad Debts Experse. Debit Ead Debts Expense and credit Accounts Receivable. Debit Allowance for Doubthul Accounts and credit Accounts Receivable. Debit Bad Debts Expense and credit Allowance for Doubtful Accounts