How is the client's estimate of the total amount of uncollectible receivables represented?
A) by the provision for doubtful debts account
B) by the bad debts expense account on the income statement
C) by the accounts with credit balances in the accounts receivable subsidiary ledger
D) in a footnote disclosure in the financial statements

Question

Quizplus · Accepted Answer

The client's estimate of the total amount of uncollectible receivables is represented by the provision for doubtful debts account, which is a contra-asset account that reduces the total accounts receivable to reflect the expected uncollectible amounts.

How Is the Client's Estimate of the Total Amount of Uncollectible