Log in

View Full Version : A debit balance in the Allowance for Uncollectible Accounts:


lopezap1
Jul 17, 2012, 04:44 PM
A debit balance in the Allowance for Uncollectible Accounts:
A) cannot occur.
B) is the normal balance.
C) occurs when the actual bad debt write-offs are less that what was estimated.
D) occurs when the actual bad debt write-offs are greater than what was estimated


I think the answer is C

paraclete
Jul 17, 2012, 04:55 PM
D. The balance of accounts receivable is a debit, the allowance offsetts this and is a credit, writeoffs in excess of the allowance generate a debit balance