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.

---

Definitions:

Testable

Characteristics of a hypothesis or theory that allows it to be disproved or supported through scientific experimentation or observation.

Predictions

Statements or claims made about the future based on current evidence or observations.

Recently Reported

Pertains to information or events that have been disclosed or made known in the near past.

Replication

The process of repeating a research study or experiment to confirm its findings or to ensure accuracy.