treyblaser9481 treyblaser9481

05-09-2019
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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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agustinsr99 agustinsr99

09-09-2019

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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