Given the unadjusted Allowance for Doubtful Accounts has a $50 debit balance,the amount of receivables written off was ________ than the amount estimated in the prior period.Thus,bad debt expense will be ________ in the current period than had the unadjusted balance been a credit balance.
A)less;less
B)greater;greater
C)greater;less
D)less;greater

Question

Quizplus · Accepted Answer

Although the Allowance for Doubtful Accounts normally has a credit balance,it may have a debit balance before it is adjusted.This happens when a company has recorded write-offs that exceed previous estimates of uncollectible accounts.

Given the Unadjusted Allowance for Doubtful Accounts Has a $50