7 year old with a cough for two months. Might be allergies? Or asthma?

Yes. Is there nasal drainage? Or sneezing or itchy throat? Then allergy, but if cough more at night or with exercise then likely asthma. See your doctor to best determine what is causing your cough.
Bacterial cause? In addition to previous answers, there have been recent reports that children with prolonged cough lasting more than a month may have bronchitis caused by bacteria. I have recently encountered a few of these cases who improved (cough gone) after taking antibiotics. Possibly, sinusitis could have been the cause.
Yes, and yes, And a whole bunch of other yesses - pertussis, mycoplasma, reflux, smoker in the house...