Which one of the following is not an accurate description of the Allowance for Doubtful Accounts?
A)The account is a contra account.
B)The account is a temporary account.
C)The amount of the Allowance for Doubtful Accounts decreases the net realizable value of a company's receivables.
D)The account is increased by an estimate of uncollectible accounts expense.

Question

Quizplus · Accepted Answer

Allowance for doubtful accounts is a contra asset account;thus,it is a permanent (rather than a temporary)account.Uncollectible accounts expense,which is reported on the income statement,is a temporary account.

Which One of the Following Is Not an Accurate Description