It is possible to have a debit balance in the allowance for doubtful accounts account before adjusting journal entries at the end of the year.

Name: It is possible to have a debit balance in the allowance for doubtful accounts account before adjusting journal entries at the end of the year.
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Question

Quizplus · Accepted Answer

A debit balance in the allowance for doubtful accounts before adjusting entries indicates that actual bad debts during the period were more than what was initially anticipated and recorded.

It Is Possible to Have a Debit Balance in the Allowance