If the Balance of the Allowance for Doubtful Accounts Account

Multiple Choice

If the balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the entry to record the write-off against the allowance account results in

A) No effect on the expenses of the current period
B) A reduction in current assets
C) A reduction in owner's equity
D) An increase in the expenses of the current period
E) A reduction in current liabilities