If the balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the entry to record the write-off against the allowanceaccount results in:

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Quizplus · Accepted Answer

If the balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, it means that the company has already recognized the potential bad debt expense in a previous period and has set aside funds to cover it. Therefore, when the bad debt is written off, there is no need to recognize additional expenses in the current period as they have already been recognized in the past. The write-off simply reduces the allowance account, which is a contra asset account, and has no effect on the expenses of the current period.

If the Balance of the Allowance for Doubtful Accounts Account