A Debit Balance in the Allowance for Doubtful Accounts

question 46

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 are higher than 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 receivables method of estimating bad debts is used.

---

Definitions:

Adoption Study

A study that focuses on children who have been reared apart from their biological parents.

Biological Parents

The parents who contribute their genetic material to the offspring through reproduction.

Heritability

The degree to which genetic differences among individuals contribute to their differences in behavior or traits.

Genetic Differences

Variations in the DNA sequences among individuals that contribute to biological diversity.