The Allowance for Doubtful Accounts
A)is easier to use than the direct writeoff method.
B)is a control account.
C)is part of ensuring faithful representation.
D)captures all of the A/R that will never be collected.

Question

Quizplus · Accepted Answer

The Allowance for Doubtful Accounts is part of ensuring faithful representation as it estimates and records potential losses from uncollectible accounts, aligning financial statements with the reality of potential credit losses.