Which of the Following Statements Does Not Correctly Describe the Allowance

question 17

Multiple Choice

Which of the following statements does not correctly describe the allowance for doubtful accounts balance?

• A)It is reported on the balance sheet as a component of current assets.
• B)It is a contra-asset account.
• C)It is reported on the balance sheet as a stockholders' equity account.
• D)It is created as a result of the adjusting entry to record bad debt expense.

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