"Allowance for Doubtful Accounts" is a(n)
A) expense account.
B) contra account.
C) liability account.
D) current asset.

Name: "Allowance for Doubtful Accounts" is a(n) A) expense account. B) contra account. C) liability account. D) current asset.
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Question

Quizplus · Accepted Answer

"Allowance for Doubtful Accounts" is a contra account to "Accounts Receivable". It represents the estimated amount of uncollectible accounts and is subtracted from the total accounts receivable to give the net realizable value.

"Allowance for Doubtful Accounts" Is A(n)