On a classified balance sheet,Accounts Receivable are reduced by ________.
A)Accumulated Depreciation
B)Retained Earnings
C)Allowance for Doubtful Accounts
D)Prepaid Assets

Question

Quizplus · Accepted Answer

Accounts Receivable are reduced by the Allowance for Doubtful Accounts, which represents the estimated amount of uncollectible accounts. This reduces the net amount of Accounts Receivable shown on the balance sheet. The other options listed (Accumulated Depreciation, Retained Earnings, and Prepaid Assets) are not directly related to the reduction of Accounts Receivable.

On a Classified Balance Sheet,Accounts Receivable Are Reduced by ________