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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