Question

If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the entry to record the write-off against the allowance account results in: Group of answer choices

Answer 1

Answer:

d.No effect on the expenses of the current period.

Explanation:

In the case when the credit balance of the allowance for doubtful debt more than the bad debt amount i.e. written off

So the entry for writing off against the allowance would result in no effect on the expense for the present period

As the bad debt expense is debited and the allowance for doubtful debt would be credited therefore the option d is correct