The account Allowance for Uncollectible Accounts is classified as a(n)
A)contra account to Uncollectible Accounts Expense.
B)expense.
C)liability.
D)contra account to Accounts Receivable.

Question

Quizplus · Accepted Answer

The Allowance for Uncollectible Accounts is a contra account to Accounts Receivable. It is used to record and estimate the amount of accounts receivable that are not expected to be collected. This contra account reduces the overall balance of Accounts Receivable, and is reported on the balance sheet as a deduction from the total amount of Accounts Receivable.

The Account Allowance for Uncollectible Accounts Is Classified as A(n)