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B01 $ * VIEW TUILIES Your answer has been saved. See score details after the due date. One might infer from a debit balance i
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Answer #1

The normal account for "Allowance for Doubtful account" is Credit balance. This is credited while estimating the Bad debt expense during the period. Thereafter, this account is debited for the actual account receivable written off.

Debit balance in the "Allowance for Doubtful account" means that:

More accounts have been written off than had been estimated.

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