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 exceeded previous provisions for bad debts.
C)indicates that actual bad debt write-offs have been less than what was estimated.
D)cannot occur if the percentage of receivables method of estimating bad debts is used.

Question

Quizplus · Accepted Answer

A debit balance in the Allowance for Doubtful Accounts indicates that the actual bad debt write-offs have exceeded the previous provisions for bad debts, meaning more debts were uncollectible than initially estimated.

A Debit Balance in the Allowance for Doubtful Accounts