The allowance for uncollectible accounts is a(n):
A) asset.
B) contra current asset.
C) expense.
D)contra revenue.

Question

Quizplus · Accepted Answer

The allowance for uncollectible accounts is a contra current asset because it is subtracted from accounts receivable on the balance sheet. It represents the estimated amount of accounts that are unlikely to be collected and serves to reduce the reported amount of accounts receivable to their net realizable value.

The Allowance for Uncollectible Accounts Is A(n)