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Anonymous

Dec 04, 2024

Which one of the following is not an accurate description of the allowance for doubtful accounts?

Which of the following statements is not an accurate description of the allowance for doubtful accounts? Please select one of the following options:

  1. The allowance for doubtful accounts is a temporary account.
  2. The allowance is increased by an estimate of uncollectible accounts expense.
  3. The allowance for doubtful accounts is a contra account.
  4. The amount of the allowance for doubtful accounts decreases the net realizable value of a company's receivables.
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2 Answers

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Anonymous

Jan 11, 2025

The account is a temporary account.Explanation: Allowance for doubtful accounts refers to the contra-asset accounts prepared to reflect the actual debtors that are expected to be paid. Temporary accounts refers to those accounts the balance of which becomes zero at the end of the financial year due to the closing entries made. However, the allowance for doubtful accounts remain on the balance sheet if the expectancy of unpaid debtor remains as such.
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Anonymous

Dec 26, 2024

A chemical reaction is irreversible and requires energy.
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Business Management Accounting Banking

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allowance for doubtful accounts uncollectible accounts financial accounting

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