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At the beginning of 20X1, Pulley Corp.'s "Allowance for Uncollectible Accounts" had a credit balance...

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Accounting

At the beginning of 20X1, Pulley Corp.'s "Allowance for Uncollectible Accounts" had a credit balance
of $40,000.
During 20X1, account receivable balances totaling $30,000 were specifically written-off as being
uncollectible.
As a result of the above, which of the following statements is true immediately after these specific
write-offs?
Select one:
a. The "Allowance for Uncollectible Accounts" account has a credit balance of $10,000 which
implies that last year's estimate of bad debts was overestimated (too high).
b. The "Allowance for Uncollectible Accounts" account has a credit balance of $10,000 which
implies that last year's estimate of bad debts was underestimated (too low).
c. The "Allowance for Uncollectible Accounts" account has a debit balance of $10,000 which
implies that last year's estimate of bad debts was overestimated (too high).
d. The "Allowance for Uncollectible Accounts" account has a debit balance of $10,000 which
implies that last year's estimate of bad debts was underestimated (too low).
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