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 total accounts receivable on the balance sheet, which is part of current assets.

The Allowance for Doubtful Accounts Is Shown Under