The Allowance for Doubtful Accounts may have a debit balance before adjustment.

Name: The Allowance for Doubtful Accounts may have a debit balance before adjustment.
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The Allowance for Doubtful Accounts is a contra asset account, which means it offsets the Accounts Receivable account. It represents the estimated amount of accounts receivable that may not be collected. Before adjustment, it may have a debit balance when the estimated bad debt expense has exceeded the actual write-offs for the period.

The Allowance for Doubtful Accounts May Have a Debit Balance