Question

The account allowance for uncollectible accounts is classified as a(n contra account to uncollectible accounts expense. expense. liability. contra account to accounts receivable.

Answer 1

Answer:

The account allowance for uncollectible accounts is classified as a contra account to accounts receivable.

Explanation:

• It is a contra asset account. It is the allowance for bad debt reserve or doubtful actions.
• Contra accounts are reported on the financial statement same as that of the associated account, appearing directly below the associated account with a $3^{rd}$ line for the net amount.

• They are useful in preserving the historical value in main account while denoting a decrease in a separate contra account that sums to the current book value.

Answer 2

Contra account to accounts receivable