Answer:
The journal entry should be as follows:
Dr Allowance for doubtful accounts 250
Cr Accounts receivable 250
Explanation:
When you use the allowance for doubtful accounts method, any bad debt written off affects only balance sheet accounts: accounts receivable (asset account) and allowance for doubtful accounts (contra asset account). No expense has to be recorded because an earlier adjusting entry had already recorded an estimation of bad debt expenses.
