BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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gross accounts receivable plus the allowance for doubtful accounts in the asset section of the balance sheet
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gross accounts receivable in the asset section of the balance sheet and the allowance for doubtful accounts in the expense section of the income statement
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gross accounts receivable less bad debt expense in the asset section of the balance sheet
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gross accounts receivable less the allowance for doubtful accounts in the asset section of the balance sheet
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Detailed explanation-1: -Explanation: Accounts receivables will always appear in the asset side of the balance sheet of the company more specifically under the current assets.
Detailed explanation-2: -Which of the following best describes the proper presentation of accounts receivable in the financial statements? Accounts receivable less the Allowance for Doubtful Accounts in the asset section of the balance sheet.
Detailed explanation-3: -Which of the following best describes accounts receivable?-The amount of cash owed by a company to its vendors for purchases of products or services on account.
Detailed explanation-4: -An account receivable is recorded as a debit in the assets section of a balance sheet. It is typically a short-term asset-short-term because normally it’s going to be realized within a year.”
Detailed explanation-5: -Correct Answer: Option a. Contra account. Explanation: The allowance for doubtful accounts represents a contra asset account that reduces the balance of the gross accounts receivable to determine the net realizable value of the receivables.