A Debit Balance in the Allowance for Doubtful Accounts

Multiple Choice

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 exceeded previous provisions for bad debts.
C) indicates that actual bad debt write-offs have been less than what was estimated.
D) cannot occur if the percentage of receivables method of estimating bad debts is used.