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3 November, 03:33

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

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  1. 3 November, 03:49
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    Answer: The correct answer is "D".

    Explanation: A debit balance in the "Allowance for Doubtful Accounts" indicates that actual bad debt write-offs have exceeded previous provisions for bad debts. So there was an estimating error of "Allowance for Doubtful Accounts".
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