At the beginning of 20X6, Duggin Corp.'s "Allowance for Uncollectible Accounts" had a credit balance of $15,000.
During 20X6, account receivable balances totaling $20,000 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?
a. The "Allowance for Uncollectible Accounts" account has a debit balance of $5,000 which implies that last year's estimate of bad debts was underestimated (too low).
b. The "Allowance for Uncollectible Accounts" account has a credit balance of $35,000 which implies that last year's estimate of bad debts was overestimated (too high).
c. The "Allowance for Uncollectible Accounts" account has a credit balance of $35,000 which implies that last year's estimate of bad debts was underestimated (too low).
d. The "Allowance for Uncollectible Accounts" account has a debit balance of $5,000 which implies that last year's estimate of bad debts was overestimated (too high).