One might infer from a debit balance in Allowance for Uncollectible Accounts that
A)a posting error has been made.
B)Uncollectible Accounts Expense has been overestimated.
C)the accounts receivable aging method apparently is being used.
D)more has been written off than had been estimated.

Question

Quizplus · Accepted Answer

A debit balance in the Allowance for Uncollectible Accounts suggests that the actual write-offs of bad debts have exceeded the estimated amount, leading to a negative balance.

One Might Infer from a Debit Balance in Allowance for Uncollectible