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(100 words minimum) Why would the Allowance for Doubtful Accounts have a debit balance? Does that mean that the company did something wrong? Explain why

(100 words minimum)

  1. Why would the Allowance for Doubtful Accounts have a debit balance? Does that mean that the company did something wrong?
  2. Explain why Net Receivables do not change when a specific customer's account is written off the books as uncollectible.
  3. Explain why Net Income does NOT change when a specific customer's account is written off the books as uncollectible.

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