A Debit Balance in the Allowance for Doubtful Accounts

question 13

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 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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Definitions:

Public Interest

The welfare or well-being of the general public and society as a whole.

Proprietorship

A type of business ownership where the business is owned and run by one individual who has full control and responsibility.

Single Individual

A term referring to one person, often used in the context of single-person households or individual decision-making.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction.