If the Allowance for Doubtful Accounts on January 1 equals $10,000 and during the year $9,000 of specific customers' accounts were written off,then its Allowance for Doubtful Accounts will have an unadjusted balance of:
A)$1,000 credit.
B)$1,000 debit.
C)$10,000 credit.
D)$9,000 debit.

Question

Quizplus · Accepted Answer

Unadjusted ending balance in Allowance for Doubtful Accounts = Beginning balance in Allowance for Doubtful Accounts − Write-offs + Recoveries
= $10,000 credit balance − debit of $9,000 + credit of $0 = $1,000 credit balance

If the Allowance for Doubtful Accounts on January 1 Equals