Allowance for Doubtful Accounts is
A) subtracted from Accounts Receivable in the Assets section of the balance sheet.
B) deducted from Sales in the Revenue section of the income statement.
C) listed in the Operating Expenses section of the income statement.
D) listed in the Liabilities section of the balance sheet.

Question

Quizplus · Accepted Answer

Allowance for Doubtful Accounts is a contra asset account that is subtracted from Accounts Receivable in the Assets section of the balance sheet. It represents the estimated amount of accounts receivable that may not be collected from customers.

Allowance for Doubtful Accounts Is