When an Allowance for Doubtful Accounts is used,accounts receivable are valued in the balance sheet at their estimated net realizable value.

Question

Quizplus · Accepted Answer

The Allowance for Doubtful Accounts is a contra asset account that is used to estimate and account for the portion of accounts receivable that may not be collected. By deducting this allowance from the Accounts Receivable balance on the balance sheet, the net realizable value of the accounts receivable is shown. Therefore, the statement is true.

When an Allowance for Doubtful Accounts Is Used,accounts Receivable Are