If the Allowance for Doubtful Accounts has a $1,000 debit balance prior to making the end-of-period adjusting entry for bad debts using the aging of accounts receivable method, then it must mean that the:
A. debit to Bad Debt Expense will be $1,000 less than if the Allowance balance had been $0.
B. direct write-off method was used.
C. percentage of sales method was used.
D. debit to Bad Debt Expense will be $1,000 more than the desired ending balance in the Allowance for Doubtful Accounts.
Answer: D
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