Allowance for Doubtful Accounts on the statement of financial position
A) is included in current liabilities.
B) increases the carrying amount of accounts receivable.
C) appears under the heading "Other Assets."
D) is deducted from accounts receivable.

Question

Quizplus · Accepted Answer

Allowance for Doubtful Accounts is a contra-asset account that is deducted from Accounts Receivable on the statement of financial position to reflect the estimated uncollectible amounts.

Allowance for Doubtful Accounts on the Statement of Financial Position