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,then it must mean that:

A) $1,000 more accounts receivables were written off than were estimated back when the prior period's adjusting entry for bad debts was recorded.
B) $1,000 fewer accounts receivables were written off than were estimated back when the prior period's adjusting entry for bad debts was recorded.
C) the direct write-off method was used.
D) the aging method was used.