Which one of the following is not an accurate description of the Allowance for Doubtful Accounts?
A)The account is an income statement account.
B)The account is a contra 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 account that decreases the net realizable value of a company's receivable. It is increased when a company estimates uncollectible accounts expense.

Which One of the Following Is Not an Accurate Description