One might infer from a debit balance in Allowance for Doubtful Accounts that
A)a posting error has been made.
B)more accounts have been written off than had been estimated.
C)the direct method is being used.
D)Bad Debt Expense has been overestimated.

Question

Quizplus · Accepted Answer

A debit balance in Allowance for Doubtful Accounts suggests that more accounts have been written off than initially estimated, indicating that the allowance was insufficient.

One Might Infer from a Debit Balance in Allowance for Doubtful