Huitipie Choice ouestion 122 The balance of Allowance for Doubtful Accounts prior to making the adjusting entry to record Bad Debt Expense O will never show a debit balance at this stage in the accounting cycle. O is relevant to both the percentage-of-receivables basis and the direct write-off method. O is relevant when using the percentage-of-receivables basis. O is relevant when using the direct write-off method. One might infer from a debit balance in Allowance for Doubtful Accounts that a posting error has been made. @more accounts have been written off than had been estimated. D the direct method is being used Bad Debt Expense has been overestimated