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    lopezap1's Avatar
    lopezap1 Posts: 13, Reputation: 1
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    #1

    Jul 17, 2012, 04:44 PM
    A debit balance in the Allowance for Uncollectible Accounts:
    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's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    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
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