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.