Allowance for Doubtful Accounts Is a Contra Account That Is

question 23

True/False

Allowance for Doubtful Accounts is a contra account that is deducted from Trade Accounts Receivable on the statement of financial position.

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Definitions:

Debit Column

A column in financial accounting used to record entries that decrease liabilities and increase assets or expenses.

Credit Column

A section on the right side of an accounting ledger used to record increases in liability, equity accounts, and revenue, or decreases in assets and expense accounts.

Ledger

A comprehensive collection of a company's accounts, where all transaction data from the journal is summarized and classified.

Unearned Rent

Income received by a landlord for rent that has not yet been earned because the rental period has not occurred.