A Debit Balance in the Allowance for Doubtful Accounts

question 146

Multiple Choice

A debit balance in the Allowance for Doubtful Accounts

• A) is the normal balance for that account.
• B) indicates that actual bad debt write-offs have exceeded previous provisions for bad debts.
• C) indicates that actual bad debt write-offs have been less than what was estimated.
• D) cannot occur if the percentage of sales method of estimating bad debts is used.

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Definitions:

Humanistic Perspective

A psychological approach that emphasizes the study of the whole person and the inherent goodness and personal growth potential of individuals.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and patterns of thoughts, feelings, and behavior.

Personal Growth

Personal growth refers to the process of improving self-awareness, knowledge, skills, and overall well-being.

Collective Unconscious

A term coined by Carl Jung, referring to structures of the unconscious mind shared among beings of the same species.