The account Allowance for Doubtful Accounts is classified as a(n)
A)liability.
B)contra account to Bad Debts Expense.
C)expense.
D)contra account to Accounts Receivable.

Question

Quizplus · Accepted Answer

Allowance for Doubtful Accounts is a contra asset account that reduces the total amount of Accounts Receivable to reflect the estimated amount of receivables that may not be collected.

The Account Allowance for Doubtful Accounts Is Classified as A(n)