On the balance sheet after adjusting entries are made, the amount shown for the Allowance for Doubtful Accounts is equal to the
A) uncollectible accounts expense for the year
B) total of the accounts receivable written off during the year
C) total estimated uncollectible accounts as of the end of the year
D) sum of all accounts that are past due

Question

Quizplus · Accepted Answer

The Allowance for Doubtful Accounts represents the estimated amount of uncollectible accounts as of the end of the year. This amount is determined based on previous experiences, industry trends, and other factors. It is not necessarily equal to the uncollectible accounts expense for the year or the total of the accounts receivable written off during the year. The sum of all past due accounts is also not used to calculate the allowance for doubtful accounts.

On the Balance Sheet After Adjusting Entries Are Made, the Amount