The Allowance for doubtful debts account would appear in the balance sheet under:
A) current assets.
B) current liabilities.
C) shareholders' equity.
D) property, plant and equipment.

Question

Quizplus · Accepted Answer

The Allowance for doubtful debts account is part of the current assets section of the balance sheet because it represents the estimated portion of accounts receivable that may not be collected. As such, it is a reduction of the accounts receivable balance and is included in the calculation of net accounts receivable.

The Allowance for Doubtful Debts Account Would Appear in the Balance