At the End of the Year,Seidner Company Has the Following

At the end of the year,Seidner Company has the following information available: The company uses the percent-of-sales method to estimate bad debts and has not prepared the adjusting journal entry for Uncollectible-Account Expense at year end.What does the debit balance in the Allowance for Uncollectible Accounts indicate?

A) The company overestimated the amount of uncollectible accounts at the end of the prior accounting period.
B) The company underestimated the amount of uncollectible accounts at the end of the prior accounting period.
C) Write-offs of uncollectible accounts increased dramatically in the current accounting period.
D) B and C