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Before the adjusting entry is made to record the bad debt expense for the current year, a company shows a $15.000 debit balance in Allowance
Before the adjusting entry is made to record the bad debt expense for the current year, a company shows a $15.000 debit balance in Allowance for Doubtful Accounts (AFDA). Required: What caused the AFDA balance to have an unadjusted debit balance? Select one O a. The estimated bad debts expense in prior years' was higher than the accounts written off. O b. The estimated bad debts expense in prior years' was lower than the accounts written off O c. Cash collected from customer accounts was higher than estimated. Od. There was no write-offs during the year Before the adjusting entry is made to record the bad debt expense for the current year, a company shows a $15,000 debit balance in Allowance for Doubtful Accounts (AFDA). Required: What caused the AFDA balance to have an unadjusted debit balance? Select one: O a. The estimated bad debts expense in prior years' was higher than the accounts written off. O b. The estimated bad debts expense in prior years' was lower than the accounts written off. O c. Cash collected from customer accounts was higher than estimated. O d. There was no write-offs during the year
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