Which balance sheet account shows the amount of accounts receivable that the business does NOT expect to collect?
A)Unearned Sales Revenue
B)Accounts Receivable
C)Allowance for Uncollectible Accounts
D)Uncollectible-Account Expense

Question

Quizplus · Accepted Answer

Allowance for Uncollectible Accounts is an account that shows the estimated amount of accounts receivable that the business does not expect to collect. This is also known as a contra asset account, as it reduces the amount of accounts receivable on the balance sheet. Choices A and D are not relevant to this question, while choice B shows the total amount of accounts receivable regardless of collectability.

Which Balance Sheet Account Shows the Amount of Accounts Receivable