The Allowance for Doubtful Accounts is shown under
A)Expenses on the income statement.
B)Revenue on the income statement.
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 amount of Accounts Receivable on the statement of financial position, which is a Current Asset. Therefore, the correct answer is D. It does not appear on the income statement or in the Current Liabilities section.

The Allowance for Doubtful Accounts Is Shown Under