The balance of Allowance for Doubtful Accounts prior to making the adjusting entry to record estimated uncollectible accounts

a. is relevant to both bases of adjusting for uncollectible accounts.

b. will never show a debit balance at this stage in the accounting cycle.

c. is relevant when using the percentage of receivables basis.

d. is relevant when using the direct write-off basis.

2. To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a

a. debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts.

b. debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.

c. debit to Loss on Credit Sales Revenue and a credit to Accounts Receivable.

d. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts.