Allowance for Uncollectible Accounts is:

Question

Quizplus · Accepted Answer

Allowance for Uncollectible Accounts is a contra asset account that is used to reduce the balance of accounts receivable to show the net amount that is expected to be collected. It reflects the estimated amount of bad debts that are likely to result from extending credit to customers. As a contra asset, it is deducted from the gross amount of accounts receivable on the balance sheet to arrive at the net realizable value. It is not an expense account, liability account, nor a contra revenue account.

Allowance for Uncollectible Accounts Is