A Debit Balance in Allowance for Doubtful Accounts

question 102

Multiple Choice

A debit balance in Allowance for Doubtful Accounts

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

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