The Balance of the Allowance for Doubtful Accounts Prior to Making

Multiple Choice

The balance of the Allowance for Doubtful Accounts prior to making the adjusting entry to record Bad Debts Expense

A) is relevant when using the percentage of receivables basis.
B) is relevant when debit card sales are made.
C) is relevant when notes receivable are used.
D) will never show a debit balance at this stage in the accounting cycle.