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If actual bad debts are more than the provision for bad debts, then there will be a_____________?
Accountingmedium
ACredit balance of Provision for Bad Debts Account
Debit balance of Provision for Bad Debts Account
CDebit balance of Bad Debts Account
DDebit balance of Discount on Debtors Account Provision for Bad Debts Account is created for writing off bad debts. Since the provision for bad debts is a credit balance account, If the actual bad debts exceed the provision created then there will be debit balance of provision for bad debts account.
Correct Answer: B. Debit balance of Provision for Bad Debts Account
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