question archive Which of the following is not true about the Allowance for Doubtful Accounts? Multiple Choice It is debited when uncollectible accounts are written off
Which of the following is not true about the Allowance for Doubtful Accounts? Multiple Choice It is debited when uncollectible accounts are written off
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Which of the following is not true about the Allowance for Doubtful Accounts?
Multiple Choice
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It is debited when uncollectible accounts are written off.
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It is credited when bad debts expense is estimated and recorded.
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It is used instead of reducing accounts receivable directly.
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It is a contra asset account.
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It is a liability account.
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Option E It is a liability account |
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| Allowance for Doubtful Accounts is not a liability account. It is a contra asset which reduces the asset balance (accounts receivable balance) in the balance sheet |
