Allowance for Doubtful Accounts is a:
A)permanent account so its balance carries forward to the next accounting period.
B)permanent account so its balance is closed (zeroed out)at the end of the accounting period.
C)temporary account so its balance is closed (zeroed out)at the end of the accounting period.
D)temporary account so its balance carries forward to the next accounting period.

Question

Quizplus · Accepted Answer

Like all contra-asset accounts,such as Accumulated Depreciation,the Allowance for Doubtful Accounts is a permanent account,so its balance carries forward from one accounting period to the next.Bad Debt Expense,which is a temporary account,will have its balance closed (zeroed out)at the end of each year.

Allowance for Doubtful Accounts Is A