How is the allowance for doubtful accounts presented in the financial statements?

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The allowance for doubtful accounts is presented as a contra account beneath accounts receivable on the balance sheet. This is because it is a reduction in the amount of accounts receivable that is expected to be collected. It is not presented as an expense in the income statement, an accrued liability on the balance sheet, or a decrease to owner's equity in the statement of owner's equity.

How Is the Allowance for Doubtful Accounts Presented in the Financial