If the Allowance for Doubtful Accounts Has a $1,000 Debit

Multiple Choice

If the Allowance for Doubtful Accounts has a $1,000 debit balance prior to making the end-of-period adjusting entry for bad debts using the aging of accounts receivable method,then it must mean that the:

A) debit to Bad Debt Expense will be $1,000 more than the desired ending balance in the Allowance for Doubtful Accounts.
B) debit to Bad Debt Expense will be $1,000 less than if the Allowance balance had been $0.
C) direct write-off method was used.
D) percentage of sales method was used.