The Allowance for Doubtful Accounts is shown under
A)Expenses on the statement of income.
B)Revenue on the statement of income.
C)Current Liabilities on the statement of financial position.
D)Current Assets on the statement of financial position.

Question

Quizplus · Accepted Answer

The Allowance for Doubtful Accounts is a contra-asset account that reduces the total amount of accounts receivable reported on the statement of financial position. It is shown under Current Assets as it directly relates to accounts receivable, a current asset.

The Allowance for Doubtful Accounts Is Shown Under