Allowance for Doubtful Accounts on the statement of financial position
A)is included in current liabilities.
B)increases the carrying amount of accounts receivable.
C)appears under the heading "Other Assets."
D)is deducted from accounts receivable.

Question

Quizplus · Accepted Answer

Allowance for Doubtful Accounts is a contra asset account that reduces the total amount of accounts receivable reported on the statement of financial position. It is not a liability, does not increase accounts receivable, and is not classified under "Other Assets."

Allowance for Doubtful Accounts on the Statement of Financial Position