Question: A debit balance in the Allowance for Doubtful Accounts cannot occur if the percentage of receivables method of estimating bad debts is used. indicates that

A debit balance in the Allowance for Doubtful Accounts

cannot occur if the percentage of receivables method of estimating bad debts is used.

indicates that actual bad debt write-offs have been less than what was estimated.

is the normal balance for that account.

indicates that actual bad debt write-offs have exceeded previous provisions for bad debts.

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