The Allowance for Doubtful Accounts will appear on the:
A)Income statement.
B)Balance sheet.
C)Cash flow statement.
D)Statement of retained earnings.

Question

Quizplus · Accepted Answer

The Allowance for Doubtful Accounts is a contra-asset account that is used to estimate the amount of accounts receivable that may not be collected. It is deducted from the total accounts receivable amount on the balance sheet to show the net amount expected to be collected. The other financial statements, such as the income statement, cash flow statement, and statement of retained earnings, do not include information about the allowance for doubtful accounts.

The Allowance for Doubtful Accounts Will Appear on The