Question

A debit balance in the allowance for doubtful accounts

Answer 1

Answer:

indicates that actual bad debt write-offs have exceeded previous provisions for bad debts

Step-by-step explanation:

When the allowance for doubtful accounts contains the debit balance that means the actual bad debt i.e. written off is more than the prior provision of bad debt

So according to the given options, the first option is correct as this is the condition where it shows the debit balance

Hence, the same is to be considered