Allowance for doubtful debts is:
A) a liability account.
B) an expense account.
C) a contra liability account.
D) a contra asset account.

Name: Allowance for doubtful debts is: A) a liability account. B) an expense account. C) a contra liability account. D) a contra asset account.
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Question

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Allowance for doubtful debts is a contra asset account, which means it reduces the total amount of the asset (accounts receivable) on the balance sheet to reflect the amount that is expected to be uncollectible.

Allowance for Doubtful Debts Is