Provisions or allowances for bad debt losses on trade notes receivable are usually included in computing the balance of "Allowance for Doubtful Accounts."

Name: Provisions or allowances for bad debt losses on trade notes receivable are usually included in computing the balance of "Allowance for Doubtful Accounts."
Brand: Quizplus
Rating: 4.9 (48 reviews)

Question

Quizplus · Accepted Answer

This is correct. The purpose of the "Allowance for Doubtful Accounts" is to offset the expected bad debt losses on trade notes receivable.

Provisions or Allowances for Bad Debt Losses on Trade Notes