When you're using he direct write off method, do you decrease the AR balance and net income?

At the time of Sale:
Dr. Accounts Receivable
Cr. Service Revenue

When you are writing it off:
Dr. Bad Debts Expense
Cr. Accounts Receivable

At the time of Sale:
Dr. Accounts Receivable
Cr. Service Revenue

When you are writing it off:
Dr. Bad Debts Expense
Cr. Accounts Receivable





Thank you!!