The balance in Allowance for Doubtful Accounts would have a debit balance when
A) the percentage of receivables basis is used.
B) an uncollectible account is later recovered.
C) write offs during the year have been less than previous provisions.
D) write offs during the year have exceeded previous provisions.

Question

Quizplus · Accepted Answer

A debit balance in the Allowance for Doubtful Accounts occurs when write-offs during the year exceed the previous provisions made for doubtful accounts.

The Balance in Allowance for Doubtful Accounts Would Have a Debit