If the Estimate of Uncollectible Accounts at the End of the Current

Multiple Choice

If the estimate of uncollectible accounts at the end of the current year is too high,which of the following is true in the following year?

A) Cash collections from customers will be greater than expected.
B) The balance of Allowance for Uncollectible Accounts will be a credit prior to its year-end adjustment.
C) The amount reported for Bad Debt Expense will be less than the ending balance of Allowance for Uncollectible Accounts after its year-end adjustment.
D) All of the other answers are true in the following year.