Which one of the following is an accurate description of Allowance for Doubtful Accounts?
A)Contra account
B)Liability account
C)Revenue account
D)Expense account

Question

Quizplus · Accepted Answer

Allowance for Doubtful Accounts is a contra account to accounts receivable, meaning it is used to reduce the balance of accounts receivable to the amount that is expected to be collected. It represents an estimate of the amount of accounts receivable that will not be collected in the future.

Which One of the Following Is an Accurate Description of Allowance