Allowance for Doubtful Accounts is reported in the
A)Liabilities section of the balance sheet.
B)Assets section of the balance sheet.
C)Operating Expenses section of the income statement.
D)Cost of Goods Sold section of the income statement.

Question

Quizplus · Accepted Answer

Allowance for Doubtful Accounts is a contra asset account that reduces the total accounts receivable reported on the balance sheet. It represents the estimated amount of accounts receivable that may not be collected.

Allowance for Doubtful Accounts Is Reported in the