Allowance for Doubtful Accounts may be used for the valuation of all types of receivables.

Name: Allowance for Doubtful Accounts may be used for the valuation of all types of receivables.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Allowance for Doubtful Accounts is a contra-asset account that is used to estimate the amount of accounts receivables that may become uncollectible. It is applicable to all types of accounts receivables, therefore the statement is true.

Allowance for Doubtful Accounts May Be Used for the Valuation