As of December 31, 2009, Fargo Company's accounts prior to adjustment show a credit balance in the allowance for uncollectible accounts. What does this signify?
a) The company has overestimated its bad debts.
b) The company has underestimated its bad debts.
c) The company's bad debts are in equilibrium.
d) The company has no bad debts to account for.
