Your Company Previously Averaged About 20% of Its Total Accounts

Multiple Choice

Your company previously averaged about 20% of its total accounts receivable in the "over 90 days past due" category and now has 35% in this category.All else equal,using the aging of accounts receivable method,the amount of the bad debt adjustment will:

A) decline,thus increasing the ending balance of the allowance account.
B) increase,thus increasing the ending balance of the allowance account.
C) decline,thus reducing the ending balance of the allowance account.
D) increase,thus reducing the ending balance of the allowance account.